Dakota Plains provides update on Pioneer Terminal Expansion

Written by Jenifer Nunez, assistant editor

Dakota Plains Holdings, Inc., provided an operations update on the Pioneer Terminal Expansion project that commenced in March 2013.


The project consists of a double loop track that can accommodate two 120 rail car unit trains, 180,000 bbls of crude oil storage, a high-speed loading facility that can accommodate 10 rail cars simultaneously and transfer stations to receive crude oil from local gathering pipelines and trucks.

A total of 75 percent of construction is completed and the $50-million project remains under budget, with full commissioning of the project expected to be in late December. The first gathering system pipeline has been connected to the Pioneer Terminal and a definitive agreement to receive oil has been executed, with first oil expected in late October.

Additionally, as part of an agreement with its joint venture partner, Dakota Plains has begun the transition to assume the management oversight of the Pioneer Terminal operations and James Tate has been appointed vice president of operations of Dakota Plains and will oversee Pioneer Terminal operations, while the company continues to develop its inbound oilfield products business at the Pioneer Terminal.

Construction is underway for the $15 million frac sand terminal with completion scheduled for May 2014. The frac sand terminal will comprise 8,000 tons of fixed sand storage, an enclosed transloading facility and four ladder tracks. Interim frac sand transloading is expected to commence in January 2014, while construction of the permanent facility is still underway.

Chairman and Chief Executive Officer Craig McKenzie said, “The growth achievements of 2013 position the company well for 2014 and beyond. We are proud to report the Pioneer Terminal expansion will increase the throughput capacity nearly three-fold to 80,000 barrels of crude oil per day at a reduced operating cost. Our direct management of the operations is an important milestone for the company as we prepare to receive the higher throughput crude oil volumes in 2014, in addition to the start-up of our frac sand operations.”


Categories: OFF Track Maintenance, Yards & Terminals