Superior Silica Sands LLC, a subsidiary of Emerge Energy Services LP, has signed an agreement with a third-party logistics provider, Torq Energy Logistics Ltd., to open a new frac sand terminal in Buick, British Columbia, Canada.
Including this new terminal, Emerge Energy will have four strategically located Western Canadian terminals and 12 total active terminals across North America.
Emerge Energy has contracted with a third-party terminal operator to provide flexibility and minimize capital costs, and the facility is being built for Emerge Energy’s exclusive use. Torq is a leading energy logistics company that operates seven rail terminals in Western Canada and will construct and operate the facility while offering 24/7 service to meet the needs of Emerge Energy’s customers.
Situated on 10 acres of property, the terminal is located on the Canadian National Railway (CN), which provides a strategic, one-line haul from Emerge Energy’s Barron, Wis., facility. Construction of the terminal is expected to be completed by the middle of August, and the site will initially accept manifest shipments with rail-to-truck storage capacity for 45 railcars. The terminal also has the capability to expand to handle unit train shipments.
“This new terminal in Buick highlights the importance of Western Canada to our business and our commitment to serving key customers in the growing Montney shale play,” commented Rick Shearer, chief executive officer of the general partner of Emerge Energy. “We continue to see the Western Canadian region as one of our home markets since we have low-cost, direct access on the CN and long-standing relationships with customers active in the area. The CN has been a crucial partner for over six years, and we are excited about enhancing this relationship as we expand our presence in Western Canada. Contracting with Torq is also exciting in that we are furthering our strategy of using third-party terminal providers to capitalize on their logistics and operating expertise while we preserve our capital for high-return mining and processing projects. Torq has a strong reputation in the energy logistics industry, and we are confident that they will do an outstanding job managing this important facility. Finally, we are in the late stages of contracting with a key Canadian customer on a take-or-pay basis. We look forward to a bright future for northern white sand demand in the Western Canadian market.”