CALGARY, Canada, April 16, 2013 (GLOBE NEWSWIRE) -- Tundra Energy Marketing Limited (Tundra) (TSX:ENB) (NYSE:ENB) announced today they have entered into a Memorandum of Understanding with Enbridge to jointly own and expand the previously announced Tundra crude oil rail loading terminal near Cromer, Manitoba to improve market access for light oil producers in Manitoba, Saskatchewan and North Dakota.
Tundra and Enbridge will build a terminal capable of loading up to 60,000 barrels a day into rail cars providing interconnection with Enbridge's Bakken Pipeline Expansion Project, Enbridge Pipeline (Saskatchewan) Inc. and Tundra's Manitoba gathering systems to move Midale, Light Sour Blend and North Dakota Bakken oil through the facility. The facility will also have access to trucked-in volumes and tank storage capabilities. Tundra will build and operate the facility and rail service will be provided by CN Rail.
"This project continues Tundra's commitment to providing infrastructure for producers in Manitoba and Saskatchewan to enhance their options for marketing and storing their production," said Bryan Lankester, President of Tundra Energy Marketing.
The project will be completed in two phases. The first phase will be a loading facility with the ability to load 30,000 barrels a day from trucks and Tundra's existing pipeline network. Phase one is under construction and is expected to be in service by July 1, 2013. The second phase, which will include connectivity to Enbridge's pipeline systems, will bring capacity up to 60,000 barrels per day by the first quarter of 2014.
Enbridge and Tundra will each own 50 per cent of the joint venture. Enbridge's participation in the venture is subject to a minimum level of shipper commitment to the facility and the completion of due diligence.
Enbridge and Tundra are both committed to timely and meaningful dialogue with all stakeholders, including partners, shareholders, customers, and employees, indigenous peoples, governments, regulators, and landowners, among others, regarding all of projects, operations and activities. Both companies will ensure this project is conducted in an environmentally-responsible manner with a focus on the safety of employees and the community.
About Tundra Energy
Tundra Energy Marketing handles crude oil on behalf of producers in the Williston Basin, including its parent company, Tundra Oil & Gas Partnership, which has been an active driller in the area for the past 32 years. Tundra Oil & Gas is a wholly-owned business of Winnipeg-based James Richardson & Sons, Limited ("JRSL"), a privately-owned, family company established in 1857. JRSL is a multi-disciplined enterprise with operations in agriculture, food processing, financial services, property management and energy exploration.