October 8, 2013 [OPIS] - Dakota Plains Holdings Inc. (Dakota Plains) said on Monday that full commissioning of the expansion of its Pioneer crude terminal in North Dakota is expected in late December 2013 as per the original schedule.
The Pioneer Terminal expansion project commenced in March earlier this year.
The project consists of a double loop track that can accommodate two 120 railcar unit trains, 180,000 bbl of crude oil storage, a high-speed loading facility that can accommodate 10 railcars simultaneously, and transfer stations to receive crude oil from local gathering pipelines and trucks.
With 75% of construction completed and all materials secured, the $50 million project remains under budget.
The first gathering system pipeline has been connected to the Pioneer Terminal. A definitive agreement to receive oil has been executed, with first oil expected in late October.
As part of an agreement with its joint venture partner, Dakota Plains has begun the transition to assume the management oversight of the Pioneer Terminal operations. As a result, Dakota Plains plans to consolidate the DPTS transloading joint venture financial statements from fourth quarter 2013 onwards.
James Tate has been appointed vice president of operations of Dakota Plains and will oversee Pioneer Terminal operations.
The company continues to develop its inbound oilfield products business at the Pioneer Terminal.
Construction is underway for the $15 million frac sand terminal announced with UNIMIN earlier this year; completion is scheduled for May 2014.
The frac sand terminal will comprise 8,000 tons of fixed sand storage, an enclosed transloading facility, and four ladder tracks. Interim frac sand transloading is expected to commence in January 2014, while construction of the permanent facility is still underway.
“We are proud to report the Pioneer Terminal expansion will increase the throughput capacity nearly three-fold to 80,000 barrels of crude oil per day at a reduced operating cost,” said Craig McKenzie, chairman and CEO of Dakota Plains.
Dakota Plains is an integrated midstream energy company, which competes through its 50/50 joint ventures to provide customers with crude oil offtake services that include marketing, transloading and trucking of crude oil and related products.
Direct and indirect assets include a proprietary trucking fleet, over 1,000 railroad tank cars, and the Pioneer Terminal transloading facility centrally located in Mountrail County, N.D., for Bakken and Three Forks related E&P activity.
