Friday, March 15, 2013

Dakota Plains' Pioneer Project Begins Construction

Construction is underway for the Pioneer Project near New Town, according to a press release from  Dakota Plains Holdings, Inc. and its joint-venture partner, Petroleum Transport Solutions, LLC, an indirect wholly owned subsidiary of World Fuel Services Corporation.

The Pioneer Project represents a significant expansion of the crude oil rail transloading facility, which is located in Mountrail County in the Williston Basin and currently sources most of its crude from the Bakken formation. The Pioneer Project provides a double loop track that will accommodate up to 120 tank car unit trains and will increase the throughput capacity from 30,000 barrels per day to up to 80,000 barrels per day.  The partnership will deploy 180,000 barrels of storage to start, with the expansion to 270,000 barrels built into the initial design. 

The crude oil will be transported on Canadian Pacific's rail network, continuing a partnership between CP and Dakota Plains Holdings and World Fuel Services.

Completion of the Pioneer Project is expected in December 2013; total cost is estimated to be $50 million and will be funded equally by Dakota Plains and World Fuel Services. The existing ladder tracks and Dakota Plains-owned land will be used for inbound delivery, storage and trucking logistics services for commodities such as sand, chemicals, diesel, and pipe. Debt financing will be provided for the Dakota Plains portion of the Pioneer project cost. 

Currently, the New Town facility is in its fourth year of midstream operations with three business segments comprising trucking, transloading, and marketing of crude oil and related products originating within the Williston Basin of North Dakota. Land ownership at the New Town facility now exceeds 192 acres, which provides a base for the Pioneer Project expansion. 

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