read about the NATO is being connected to a pipeline....

On December 7, 2012, Canexus announced the expansion of its Bruderheim terminal capabilities to include pipeline connected unit train operations. In this next phase of NATO expansion, Canexus plans to connect the Bruderheim terminal by pipeline (24 inch bitumen blend line and 12 inch condensate line) to MEG Energy Corp. ("MEG") pipelines, which interconnect with MEG's Stonefell Terminal, as well as potentially to a second pipeline connected facility located nearby. In addition, the Corporation plans to build out the rail infrastructure, loading/offloading and above ground tank storage required to allow for unit train movement of up to 118 tank cars (approximately 70,000 barrel movements) in single trains daily. The cost of the project is expected to be approximately $125 million, inclusive of the $25 million to $35 million of pre-spending in 2012 for long lead items and other construction activities that are currently underway.

The major components of this attractive growth project are:

  • Two 120,000 barrel bitumen blend storage tanks
  • A 10 kilometre 24" bitumen blend pipeline capable of transferring more than 150,000 barrels per day to the Bruderheim terminal
  • A 12" condensate line in the same right of way capable of transferring up to 150,000 barrels of condensate per day from the Bruderheim terminal
  • Rail loading facilities capable of loading 72,000 barrels in approximately 16 hours
  • More than 5 kilometers of 'loop track' that will allow Canexus to manage two unit trains at the terminal at the same time
  • An additional 6.3 kilometres of track in a rail spur to allow unit trains to re-enter the mainline efficiently and to facilitate the transloading of other tank cars that do not form a full unit train. With the additional track, Canexus expects to be able to store up to 600 railcars for hydrocarbon service at its Bruderheim Terminal
  • A potential second pipeline connection for both bitumen blend and condensate.

"We are very excited about this next phase of expansion at Bruderheim. Not only is this project expected to be accretive to all common shareholders, it also sets the stage for future incremental unit train capability, utilization of the existing 1.6 million barrels of salt cavern storage, development of additional salt cavern storage and pursuit of other attractive investment opportunities at this 480 acre site," said Mr. Kubera.