December 15, 2014 [OPIS] - Dakota Plains Holdings Inc. said Friday that it will resume its storage tank expansion project at its Pioneer Terminal in spring 2015 after completing the winter shutdown.
The project is on schedule and fully funded. In addition, a new service agreement with an existing client enables increasing the throughput of the Pioneer Terminal to 55,000 b/d from January 2015.
Canadian Pacific has pledged an expanded rail service to underpin the forecast increases in throughput at Pioneer.
In September, Dakota Plains said that it would expand crude oil storage capacity at its Pioneer Terminal in New Town, N.D., by 50%.
Construction of a third 90,000-bbl storage tank was to begin immediately, and regulatory permits and engineering design were complete.
Dakota Plains expects the storage tank to be operational by summer 2015.
The Pioneer Terminal is located in the heart of the Bakken and Three Forks formations and currently has sustainable throughput capacity of 45,000 b/d, with onsite oil storage of 180,000 bbl.
For 2015 the company provides an annualized guidance that includes an average daily throughput of 57,500 b/d and an adjusted EBITDA of $23.4 million.
“Based on significant levels of increased interest, we are considering further expansion of the Pioneer Terminal beyond 80,000 barrels per day,” said Craig McKenzie, CEO of Dakota Plains.
“We are encouraged to see significant growth opportunities even during the current low oil price environment. I believe this is a tribute to our competitive advantage as a centrally located, reliable, and cost efficient rail terminal that plays an important role in transporting Bakken and Three Forks oil to market,” he said.
