November 7, 2012

Massive rail car loading facility planned

RICHARD GILBERT

staff writer

Tundra Energy Marketing Limited is undertaking the construction of a crude oil rail car loading facility and an oil storage terminal near Cromer, Man., which are being designed to provide service to Bakken crude oil producers in Manitoba and Saskatchewan.

“This project, combined with 410,000 barrels of oil storage currently under construction at our terminal in Cromer, will provide us with access to alternative North American markets for Williston Basin crude oil over CN’s network at a time when there is inadequate pipeline takeaway capacity,” said Bryan Lankester, president of Tundra Energy Marketing.

“Our Cromer location at the most easterly point of crude oil production in Canada should provide a market advantage to our crude oil producers and shippers.”

CN and Tundra recently signed a deal to construct a crude oil rail car loading terminal near Cromer.

This new facility will initially load 30,000 barrels of crude oil per day into rail cars.

This is the equivalent of more than 50 tank cars per day.

The facility is expandable and will have the potential to handle a unit train of 100 tank cars, with each train carrying about 60,000 barrels per day of crude oil.

It is scheduled for completion in the second quarter of 2013.

In addition, Tundra has started site preparation on an ambitious expansion project at its 70,000 barrel oil storage facility in Cromer.

The initiative is adding 410,000 barrels of oil storage, which represents a six-fold increase in its capacity.

Construction of the two tanks, each 205,000 barrels in size, will continue for about 15 months and is scheduled for completion in the fourth quarter of 2013.

Tundra Energy Marketing handles crude oil for producers in the Williston Basin.

This includes its parent company, Tundra Oil & Gas Partnership, which has been an active driller in the area for the past 32 years.

As a shipper on the Enbridge Mainline, Tundra markets its own oil, as well as third party oil through its truck terminal and storage facility at Cromer.

Both companies are owned by James Richardson & Sons Limited, which is a privately-held Winnipeg-based company established in 1857.

Tundra Oil and Gas began operations in January 1980.

The company currently employs 186 full-time staff located in three offices: Virden, Manitoba; Calgary, Alberta; and Winnipeg, Manitoba.

The corporate head office is in Winnipeg.

It provides accounting, mineral leasing, well licensing and HR support for all offices.

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