Canadian Pacific expands its oil by rail operation to Lloydminster, Saskatchewan
New transload facility to serve NuStar Energy with planned expansion in
2012
CALGARY, Feb. 2, 2012 /PRNewswire/ – Canadian Pacific (TSX: CP) (NYSE: CP)
today announced that, by leveraging its North Main Line infrastructure,
the company is now shipping crude oil by rail from a new transload
facility near Lloydminster, Saskatchewan. This new facility is a key
enhancement to CP’s growing energy portfolio. It accommodates the
initial transload and transportation needs of NuStar Energy LP (NYSE:
NS), with a further planned expansion in 2012.
“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.”
“This new facility and the planned expansion in 2012 represent an
exciting growth opportunity for CP’s energy portfolio,” said CP Energy
and Merchandise Vice President Tracy Robinson. “CP offers a flexible,
reliable and efficient method of transporting crude oil and other
energy-related products to emerging markets and we are proud to be
partnering with NuStar to meet its growing transportation needs.”
“Lloydminster is highly regarded for innovation in the energy sector and
this initiative is one more opportunity to shine positive light on this
region. Torq Transloading and Canadian Pacific are two solid
organizations with a healthy balanced focus on innovation, efficiency,
safety and economic growth joining forces to serve the needs of
industry leader NuStar Energy LP. We are excited to see where this may
stimulate more transload facility activities in our City,” commented
Mayor Jeff Mulligan.
Canadian Pacific is the only North American railway to serve the Alberta
Industrial Heartland, the Bakken Formation and the Marcellus Shale. In
addition, CP is the only Class I railway to connect the energy hubs of
Alberta, Saskatchewan and the U.S. Midwest to the Northeast U.S. The
Lloydminster facility, operated by Torq Transloading, enables CP to
transport oil by rail to NuStar’s terminals in the Northeast U.S. and
Gulf Coast.
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.
Of the 140 million tons of freight shipped annually on CP, hundreds of
thousands of carloads are directly related to energy production and
distribution. This includes crude oil, sulphur, fuels, diluents and
materials key to the energy industry, such as pipe and frac sand.
Note on forward-looking information – Canadian Pacific
This news release contains certain forward-looking statements relating
but not limited to our operations, proposed investments, anticipated
financial performance and business prospects. Undue reliance should
not be placed on forward-looking information as actual results may
differ materially.
By its nature, CP’s forward-looking information involves numerous
assumptions, inherent risks and uncertainties. Forward-looking
statements are not guarantees of future performance. Factors that
could affect forward-looking information include, but are not limited
to: changes in business strategies; general North American and global
economic, credit and business conditions; inflation; currency and
interest rate fluctuations; the availability and price of energy
commodities; the effects of competition and pricing pressures; industry
capacity; shifts in market demand; changes in laws and regulations,
including regulation of rates; changes in taxes and tax rates; actions
by regulators; potential increases in maintenance and operating costs;
uncertainties of litigation; risks and liabilities arising from
derailments; timing of completion of capital and maintenance projects;
currency and interest rate fluctuations; technological changes; and
various events that could disrupt operations, including severe weather
conditions, flooding, earthquakes, labour disputes, risks and
liabilities arising from derailments as well as security threats and
governmental response to them. Other risks are detailed from time to
time in reports filed by CP with securities regulators in Canada and
the United States. Reference should be made to “Management’s
Discussion and Analysis” in CP’s annual and interim reports, Annual
Information Form and Form 40-F for a summary of major risks.
Except as required by law, CP undertakes no obligation to update
publicly or otherwise revise any forward-looking information, whether
as a result of new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) operates a North American
transcontinental railway providing freight transportation services,
logistics solutions and supply chain expertise. Incorporating
best-in-class technology and environmental practices, CP is re-defining
itself as a modern 21st century transportation company built on safety,
service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.
About NuStar Energy
NuStar Energy L.P. is a publicly traded, limited partnership based in
San Antonio with 8,417 miles of pipeline; 89 terminal and storage
facilities that store and distribute crude oil, refined products and
specialty liquids; and two asphalt refineries and a fuels refinery with
a combined throughput capacity of 118,500 barrels per day. The
partnership’s combined system has approximately 98 million barrels of
storage capacity. One of the largest asphalt refiners and marketers in
the U.S. and the second largest independent liquids terminal operator
in the nation, NuStar has operations in the United States, Canada,
Mexico, the Netherlands, including St. Eustatius in the Caribbean, the
United Kingdom and Turkey. For more information, visit NuStar Energy
L.P.’s Web site at http://www.nustarenergy.com.
SOURCE Canadian Pacific