Catering to increasing Canadian oil production, the U.S. rail logistics company and the Canadian midstream energy firm have jointly secured sufficient customer term commitments to build a unit train rail loading facility a short distance away from, and connected by pipeline to, Gibson’s Hardisty terminal, they said.

Operations are targeted to begin in the first quarter of 2014.

Gibson will install pumping equipment and build a pipeline for the transfer of crude from its Hardisty terminal to the U.S. Development Group rail facility.

The term contracts are with four investment-grade customers for about 100,000 b/d; those contracts along with a connection agreement between Gibson and U.S. Development Group provide the support for the capital investment.

 The Hardisty Rail Terminal will have initial capacity of 140,000 b/d to handle multiple grades of crude oil and will be served by Canadian Pacific’s high-

capacity North Main Line. The rail facility will be able to handle two unit trains per day of up to 120 railcars each and will consist of a fixed loading rack with 30 railcar loading positions.

In addition, there will be a unit train staging area and loop tracks capable of holding up to five unit trains.

Gibson is currently adding 500,000 bbl of crude oil capacity (seen in service in early 2015) to its Hardisty Terminal. Other recent expansions include the 

addition of a 400,000-bbl tank (announced in April and expected to in service mid-2014) and two 400,000-bbl tanks (announced in September 2012 and seen in
operational in late 2014).

In association with Plains All American Pipeline, Houston-based U.S. Development Group has designed and developed other large-scale rail logistics centers for crude oil in locations including St. James, La.; Gardendale, Texas; Carr, Colo.; and Van Hook, N.D.

Calgary-based Gibson Energy is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, water, oilfield waste and refined products.