Wednesday, July 18, 2012

CP, Smart Sand to build frac sand facility

CP, Smart Sand to build frac sand facility CP

Smart Sand and Canadian Pacific Railway have entered into a long-term partnership, under which the two companies will supply and ship premium, Northern White frac sand to the unconventional oil and gas industry in North America producing regions (including the Bakken and Eagle Ford formations and the Utica and Marcellus Shales). The two companies also announced the partnership's first initiative: building a new frac sand transload facility, expected to be the region's largest, in Makoti, N.D., that will serve the Bakken formation in the Williston Basin beginning in early 2013.

"We are excited to partner with transportation leader Canadian Pacific to bring our combined expertise to those companies working in the Bakken Shale formation," said Charles Young, founder, president and board member of Smart Sand.

"Smart Sand has prime resources and processing capabilities which align well with CP's shipping presence in the energy sector. This agreement with Smart Sand demonstrates our commitment to provide our customers with end-to-end transportation service that is competitive and reliable," said Jane O'Hagan, CP's executive vice president and chief marketing officer.

Smart Sand's primary facility, which opened in late June 2012 and is located on the CP rail line in Oakdale, Wis., will supply premium Northern White frac sand in a broad range of mesh sizes to the new transload facility. Based on Smart Sand's initial processing capacity of more than one million tons per year, plus the company's reserves, the facility will be able to quickly fulfill long- and short-term orders, while providing direct rail access for unit trains.

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