“The Pioneer Terminal expansion project remains on schedule and on budget for a year-end start-up despite the inclement weather conditions we continue to face,” said Craig McKenzie, chairman and chief executive officer of Dakota Plains.

An affiliate of World Fuel Services, the parent company of Dakota Plains’ joint venture partner in New Town, N.D., is providing a term loan with up to $20 million in available funds that will finance a portion of Dakota Plains’ share of the Pioneer Terminal expansion project.

As previously announced, the Pioneer Terminal expansion 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 b/d to 80,000 b/d.

The joint-venture partners also agreed to use $31 million of restricted cash in the joint ventures for the purposes of funding the project. As a result, Dakota Plains’ $25 million share of the Pioneer Terminal expansion project is now fully funded.

The term loan facility is reserved for the Pioneer Terminal expansion project and has a drawdown capacity of up to $20 million with a maturity date of Dec. 31, 2026.

Based on Dakota Plains’ 50% share of the expected $50 million gross project cost, Dakota Plains anticipates that its total drawdown will not exceed $10 million. Pursuant to the term loan, the interest rate for this level of drawdown is 9.0%.

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 arketing, transloading and trucking of crude oil and related products.

Direct and indirect company assets include a proprietary trucking fleet, approximately 1,100 railroad tank cars, and the Pioneer Crude-By-Rail Terminal transloading facility centrally located in Mountrail County, N.D., for Bakken and Three Forks related E&P activity.