In a news release on October 27, 2014, Houston, Texas, based Crestwood Midstream Partners LP (NYSE: CMLP) announced the loading of the 1,000th crude oil unit train at its COLT Hub in Epping, North Dakota. The COLT rail facility commenced service in June 2012 with an original capacity to load 80,000 barrels per day ("Bpd"). The facility has undergone two major expansions since 2012 and has a current capacity to load up to 160,000 Bpd. Crestwood's COLT rail facility is one of the largest crude-by-rail loading terminals in the U.S., based on daily volumes loaded, currently averaging approximately 120,000 Bpd.
A central logistics point for crude oil produced in the Bakken Shale, the COLT Hub receives crude from pipeline connections with Summit Midstream's Meadowlark pipeline, Tesoro's High Plains pipeline and Hiland Partners' Market Center pipeline. The COLT Hub has 1.2 million barrels of storage capacity and can also deliver crude oil to the Enbridge and Tesoro pipeline systems, at the Beaver Lodge terminal, through Crestwood's COLT Connector pipeline.
"We are pleased to announce this crude loading milestone at the COLT Hub," stated Bill Gautreaux, President of Crestwood's Liquids and Crude Business Unit. "The COLT Hub is a major distribution point for crude oil produced in the Bakken. Refiners on the East and West Coasts are much less reliant on foreign imports and gain direct access to higher quality and lower cost feedstock." Gautreaux adds, "Reaching the 1,000th unit train loading in such a short time frame since commissioning the facility is a testament to the strength of the Bakken play, BNSF Railroad and our customers' willingness to devote substantial investment to the play."
"North Dakota recently surpassed a major milestone of one million barrels of crude production per day," said Ron Ness, President of the North Dakota Petroleum Council. "In addition, the industry has proven that this amount of production can be moved to market efficiently. Rail has played a big role in those movements and is now making other value added energy projects possible."
"The COLT Hub and rail facility continues to be the centerpiece for our Bakken Shale midstream value-chain strategy," commented Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood. "We have made significant investments in the Bakken Shale in recent years due to our belief that the Bakken play is an important part of America's drive to energy independence."
Despite the recent reduction in global crude prices and the narrowing of the spread between Brent and WTI price indices, Crestwood believes the COLT Hub, along with our other crude gathering, trucking, storage and terminal assets, are well positioned to provide valuable midstream services for many years.
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