Canada based midstream oilfield service provider TORQ Transloading will construct a new crude-by-rail terminal in the Kerrobert town of Saskatchewan region with an investment of $100m.

Following the construction in 2014, the Kerrobert Rail Terminal will be served by the Canadian Pacific Railway and will have the capacity to manage two 120 car unit trains per day that would ship about 168,000 barrels per day.

The current truck deliveries will also be delivered to the new rail terminal storage tanks that are expected to add about 500,000 barrels of storage including a mixture of both heated and non-heated.

Expected to start the operations in third quarter of 2014, the Kerrobert terminal will be designed to receive inbound as well as rail back-hauled condensate.

TORQ CEO Jarrett Zielinski said the company took the scale-at-hub approach in the location selection process for the Kerrobert Rail Terminal.

“We feel that Kerrobert is strategic in that it allows maximum diversity and flexibility for crude-by-rail out of Western Canada,” Zielinski added.

“It is as far south and east geographically in Canada that allows us to not only access vast amounts of pipeline delivered crude oil but also it allows us to access significant quantities of heavy, undiluted crudes in the Lloydminster-Kerrobert corridor.

“This project adds upstream value to TORQ’s overall supply chain strategy of integrating upstream pipelines, storage and rail transportation with downstream rail offloading capacity and direct end user access via pipeline and water.”

Currently, TORQ operates six crude-by-rail transload terminals across Alberta and Saskatchewan, while it also serves on behalf of Canadian Pacific Railway at Tilley and Lloydminster as well as for Canadian National Railway at Whitecourt.

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