Pipeline News – Northgate Rail Hub
With farmers fuming at the railways for lack of action in moving the largest crop in history to port, any alternative is being considered. With a surge in crude-by-rail, some people are pointing figures at the oil industry for taking up capacity they feel could otherwise be used for grain shipments.
Premier Brad Wall on Feb. 26 suggested that the Northgate Commodity Logistics Hub, currently under construction on the U.S. border, might be a future option.
The $90 million project connects to the BNSF railway, not Canadian Pacific or Canadian National, providing a direct path into the American heartland and points beyond.
Construction on the 1,300 acre site began on June 3, 2013. It’s principle purpose it to ship out crude oil and grain, and bring in frac sand and pipe for drilling. At full-build out, it should be able to ship out 70,000 barrels per day of oil, a number very close to all of Saskatchewan’s current Bakken oil production. However, it turns out that natural gas liquids, or NGLs, are also being added to the mix. Pipeline News spoke to Ceres Global Ag Corp. president and CEO Michael Detlefsen in Toronto via phone on March 12.
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