Quantcast
Last updated on April 23, 2014 at 12:22 EDT

CN and Tundra Energy Marketing to construct crude oil rail car loading terminal in Manitoba

October 18, 2012

CALGARY, Oct. 18, 2012 /PRNewswire/ – CN (TSX: CNR) (NYSE: CNI) and
Tundra Energy Marketing Limited announced today they have signed a
memorandum of understanding to construct a crude oil rail car loading
terminal near Cromer, Man., to meet the needs of Bakken crude oil
producers in Manitoba and Saskatchewan.

The terminal will initially load 30,000 barrels of crude oil per day
into rail cars – the equivalent of more than 50 tank cars worth -
starting in the second quarter of 2013. The facility will have the
potential to accommodate a unit train of 100 tank cars, with each train
carrying approximately 60,000 barrels per day of crude oil.

Bryan Lankester, president of Tundra Energy Marketing, said: “This
project, combined with 410,000 barrels of oil storage currently under
construction at our terminal in Cromer – a six-fold increase in
existing capacity — will provide us with access to alternative North
American markets for Williston Basin crude oil over CN’s network at a
time when there is inadequate pipeline takeaway capacity. Our Cromer
location at the most easterly point of crude oil production in Canada
should provide a market advantage to our crude oil producers and
shippers.”

Jean-Jacques Ruest, CN executive vice-president and chief marketing
officer, said: “We are pleased to be a key supply chain enabler for
Tundra Energy Marketing. CN will help Tundra’s customers reach markets
with good net-backs for their crude. And further growth will be part of
the story – the Cromer transload terminal is expandable, with the
potential to handle complete crude oil unit trains of more than 100
cars, which will generate greater efficiencies and market reach for
Canadian crude oil.

“Working closely with companies such as Tundra Energy Marketing is
making the transportation of crude oil one of CN’s fastest growing
businesses. We expect to move more than 30,000 carloads of crude oil in
2012, and we believe we have the scope to double this crude oil
business next year.”

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.

About CN
CN – Canadian National Railway Company and its operating railway
subsidiaries – spans Canada and mid-America, from the Atlantic and
Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver,
Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit,
Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul,
Memphis, and Jackson, Miss., with connections to all points in North
America. For more information on CN, visit the company’s website at www.cn.ca.

Forward-Looking Statements
Certain information included in this news release constitutes
“forward-looking statements” within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and under Canadian
securities laws. CN cautions that, by their nature, these
forward-looking statements, including statements related to the growth
of the crude oil transportation market, involve risks, uncertainties
and assumptions.  The Company cautions that its assumptions may not
materialize and that current economic conditions render such
assumptions, although reasonable at the time they were made, subject to
greater uncertainty. Such forward-looking statements are not guarantees
of future performance and involve known and unknown risks,
uncertainties and other factors, which may cause the actual results or
performance of the Company or the rail industry to be materially
different from the outlook or any future results or performance implied
by such statements. Important factors that could affect the above
forward-looking statements include, but are not limited to, the effects
of general economic and business conditions, industry competition,
inflation, currency and interest rate fluctuations, changes in fuel
prices, legislative and/or regulatory developments, compliance with
environmental laws and regulations, actions by regulators, various
events which could disrupt operations, including natural events such as
severe weather, droughts, floods and earthquakes, labor negotiations
and disruptions, environmental claims, uncertainties of investigations,
proceedings or other types of claims and litigation, risks and
liabilities arising from derailments, and other risks detailed from
time to time in reports filed by CN with securities regulators in
Canada and the United States. Reference should be made to “Management’s
Discussion and Analysis” in CN’s annual and interim reports, Annual
Information Form and Form 40-F filed with Canadian and U.S. securities
regulators, available on CN’s website, for a summary of major risks.

CN assumes no obligation to update or revise forward-looking statements
to reflect future events, changes in circumstances, or changes in
beliefs, unless required by applicable Canadian securities laws. In the
event CN does update any forward-looking statement, no inference should
be made that CN will make additional updates with respect to that
statement, related matters, or any other forward-looking statement.

SOURCE CN


Source: PR Newswire