Dakota Plains Holdings, the
MN-headquartered provider of broad-spectrum crude oil offtake services spanning
marketing, transloading, and trucking of crude and related products, is
squarely focused on growing their Williston Basin (Bakken and Three Forks) centric
operations through judicious capacity expansion of their optimally located New
Town facility in Mountrail County, North Dakota.
With a sizeable and
proprietary fleet of trucks, as well as over 1k railroad tank cars at their
disposal (directly and indirectly) through existing JVs, it is little wonder
DAKP pushed record volumes in their marketing/transloading figures for November
2013, with multiple daily gross rates exceeding 36k barrels per day. Direct
connection to partner Canadian Pacific’s Class 1 Railway ensures a bright
future for DAKP as they continue to serve Bakken/Three Forks interests well on
into the future and their now culminating Pioneer Terminal JV expansion project
should improve overall throughput/profitability handsomely.
Markets should be getting an
update from the company any day now on the Pioneer Terminal commissioning,
which adds two 8.3k foot loop tracks, each capable of handling a 120 car unit
train, as well as two crude storage tanks totaling 180k bbls in capacity. The
rapidly developing inbound oilfield products activity at the Pioneer Terminal
is also key for DAKP here, with the New Town facility’s four existing 2.5k foot
tracks to be used in support of inbound oilfield supplies like frac sand,
something for which the company is currently constructing a $15M terminal that
(slated for completion in May of this year). The 750k tons per year frac sand
terminal, announced earlier in 2013 and fully funded by top North American
non-metallic industrial minerals producer, UNIMIN Corp., will carry some 8k
tons of fixed sand storage, as well as featuring enclosed transloading.
The Pioneer Terminal
expansion incorporates a high-speed loading facility capable of handling 10
rail cars at the same time, in addition to transfer stations for organizing
crude coming in from trucks and local gathering pipelines, with one such
pipeline already in service and a projected 8k BOPD feed rate. The fact that
they executed this new expansion via JV, incurring only half the$50M price tag
and are now in the final stages of completing a transition whereby DAKP will
assume management of the Pioneer Terminal, with over 11k work-hours and zero
lost time due to safety incidents, while also bringing the project in under
budget, speaks volumes about the project’s development team. President and COO
of DAKP, Gabe Claypool, who helped spearhead the company’s initial doubling of
on-site capacity and creation of their key marketing/trucking JVs, was
instrumental as the Pioneer Terminal expansion project team leader in achieving
such success.
For more information, visit
www.DakotaPlains.com
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