Dakota Plains Holdings Inc. and joint venture partner, Petroleum Transport Solutions LLC, an indirect wholly owned subsidiary of World Fuel Services Corp., report construction is underway for the Pioneer Project.
The project represents a significant expansion of the New Town transloading facility located in the heart of the Williston Basin. Crude oil supplying the facility is sourced primarily from the Bakken formation that underlies parts of Montana, North Dakota, and Saskatchewan. The Pioneer 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 bpd up to 80,000 bpd.
The partnership will deploy 180,000 bbls of storage to start with expansion to 270,000 bbls built into the initial design. The addition of storage tanks will improve the reliability and efficiency of the crude reception by truck and opens the door for crude oil deliveries from gathering systems, or short range pipelines.
The crude oil will be transported on Canadian Pacific’s (CP) rail network, continuing a partnership between CP, Dakota Plains Holdings and World Fuel Services. Completion of the project is expected in December and the total cost is estimated to cost $50 million.