U.S. Development Group, Gibson Energy to build crude-by-rail facility in Alberta

U.S. Development Group L.L.C. (USDG) and Gibson Energy Inc. today announced they've partnered to expand USDG's crude-by-rail development to Canada and increase transportation options for Gibson's terminal in Hardisty, Alberta.

The companies have jointly secured sufficient customer commitments to construct a new state-of-the-art unit train loading facility near Hardisty that will be served by Canadian Pacific and include pipeline connectivity from Gibson's Hardisty terminal, USDG and Gibson officials said in a press release.

To begin operating in first-quarter 2014, the Hardisty Rail Terminal will handle multiple grades of crude oil and have an initial capacity of 140,000 barrels per day. The facility is designed to handle two unit trains with up to 120 cars per day, and will feature a fixed loading rack with 30 rail-car loading positions, a unit train staging area and loop tracks that can hold up to five unit trains.

As part of the project, Gibson will install pumping equipment and construct a pipeline for the transfer of crude from its Hardisty terminal to the crude-by-rail facility.

"The development of the Hardisty Rail Terminal provides our customers with more optionality to facilitate crude oil movements across North America," said Rick Wise, Gibson's senior vice president of operations.

The Hardisty Rail Terminal will be a significant rail hub, said CP Vice President of Energy and Merchandise Tracy Robinson.

"[It's] located on CP's high-capacity north mainline with efficient access to the refining markets across North America," said Robinson.