Canadian National Railway Co. (CN) and Tundra Energy Marketing Ltd. agreed to build a crude oil rail terminal near Cromer, Man., to transport Bakken crude oil for producers in Manitoba and Saskatchewan.
TEM handles crude oil on behalf of producers in the Williston basin, including its parent company, Tundra Oil & Gas Partnership.
Scheduled to start operating in second-quarter 2013, the terminal initially will be able to load more than 50 tank cars or 30,000 b/d. Design plans call for terminal to have capacity to accommodate a unit train of 100 tank cars or 60,000 b/d of oil.
TEM executives said the rail terminal will producers a transportation option given inadequate pipeline take-away capacity.