Tundra, Enbridge Signs New JV Pact for Manitoba Crude Rail Terminal
April 17, 2013 [OPIS] - Tundra Energy Marketing Limited (Tundra) said that it has signed a Memorandum of Understanding with Enbridge Energy Partners to jointly own and expand the previously announced Tundra crude oil rail loading terminal near Cromer, Manitoba to improve market access for light oil producers in Manitoba, Saskatchewan and North Dakota.
This new 50-50 joint venture appears to have replace a previous JV pact between Tundra and Canadian National Railway Company, which was announced in October 2012. The previous JV deal also included construction of a crude rail loading terminal at Cromer, and the project timetable was the same.
A Tundra spokesman was not immediately available for comment.
Tundra and Enbridge will build a terminal capable of loading up to 60,000 b/d into rail cars providing interconnection with Enbridge's Bakken Pipeline Expansion Project, Enbridge Pipeline (Saskatchewan) Inc. and Tundra's Manitoba gathering systems to move Midale, Light Sour Blend and North Dakota Bakken oil through the facility.
The facility will also have access to trucked-in volumes and tank storage capabilities.
Tundra will build and operate the facility and rail service will be provided by CN Rail. The project will be completed in two phases.
The first phase will be a loading facility with the ability to load 30,000 b/d from trucks and Tundra's existing pipeline network. Phase one is under construction and is expected to be in service by July 1, 2013.
The second phase, which will include connectivity to Enbridge's pipeline systems, will bring capacity up to 60,000 b/d by the first quarter of 2014.
Enbridge and Tundra will each own 50% of the joint venture.
Enbridge's participation in the venture is subject to a minimum level of shipper commitment to the facility and the completion of due diligence.
Tundra Energy Marketing handles crude oil on behalf of producers in the Williston Basin, including its parent company, Tundra Oil & Gas Partnership, which has been an active driller in the area for the past 32 years.
Tundra Oil & Gas is a wholly owned business of Winnipeg-based James Richardson & Sons, Limited (JRSL), a privately-owned, family company established in 1857. JRSL is a multi-disciplined enterprise with operations in agriculture, food processing, financial services, property management and energy exploration.
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Added to TankTerminals.com on: Wednesday, April 17, 2013 by OPIS.