Canadian Pacific (CP) announced that the company is now shipping crude oil by rail from a new transload facility near Lloydminster, Sask. The new facility represents a key enhancement to CP’s growing energy portfolio. It accommodates the initial transload and transportation needs of NuStar Energy LP, a Texas-based asphalt refiner and operator of petroleum product terminals and petroleum liquids pipelines, with a further planned expansion in 2012.
The Lloydminster facility, operated by Torq Transloading, will enable CP to transport oil by rail to NuStar’s terminals in the U.S. Northeast and Gulf Coast.
“Moving Canadian crude through CP’s North American network is a great complement to our asset base, which includes terminals and a large and expanding fleet of 1,700 coiled and insulated rail cars,” said NuStar President and CEO Curt Anastasio. “We believe that moving undiluted heavy Canadian crude by rail to coastal markets is an economically viable solution that brings added value to the end users, as well as the producers in Canada.”
In addition to the new facility near Lloydminster, CP continues to transport oil from other transload facilities in Saskatchewan and Alberta. The transloading process involves the use of a specialized pump and closed loop hose system, which safely transfers the oil from trucks to purpose-designed rail cars.