TORONTO (miningweekly.com) – The first crude oil unit train loaded at the new Black Thunder Terminal departed the Wyoming terminal on Friday, bound for a refinery on the East Coast, using the Union Pacific railway.

The Black Thunder Terminal is a joint venture (JV) between Meritage Midstream and Arch Coal and is strategically located at the Black Thunder mining complex in Campbell County, Wyoming, in the heart of the Powder River Basin's drilling activity.

The terminal will take advantage of the insufficient pipeline and rail infrastructure in the heart of the mainly coal-producing region, allowing companies applying new drilling techniques to legacy oil fields in the basin to move crude oil and condensate to the highest value markets.

The 99-car train is carrying 70 000 bbl of crude oil for the terminal's anchor shipper, Black Thunder Marketing, and is made up of brand new tank cars that conform with the latest safety standards adopted earlier this year by the American Association of Railroads.

Being served by the Union Pacific and BNSF railways, the Black Thunder Terminal will provide crude oil producers in Wyoming's Powder River Basin with an outbound rail-to-market transport option.

The first phase, comprising a truck-to-train transloading service, has been in operation at Black Thunder since early March. The current transload capacity is 10 000 bbl/d, and the companies said landing and loading space was available.

Construction of the second phase is expected to start later this year. The Phase 2 facility will include up to four 100 000 bbl storage tanks and a 15-car rack system capable of loading 15 to 18 cars an hour.

The goal is to load an entire unit train in 15 hours. The high-speed loading service is expected to be available from next year.

The JV partners said the terminal's location at the Black Thunder mining complex provided ample room for further expansion to meet customer needs.