USD and Gibson launch “DRUBit by Rail”

Written by

Marybeth Luczak, Editor-in-Chief

“The launch of DRUbit ™ by Rail ™ helps us meet key sustainability goals while creating new efficiencies for customers,” CP wrote on Twitter. (Photo courtesy of CP.)

Alberta’s Hardisty energy terminal has opened a diluent recovery unit, and the DRUbit ™ it creates, a proprietary Canadian heavy crude oil specifically designed for rail transportation, is ready to ship, according to the 50- 50 of the terminal with US Development Group. (USD) and Gibson Energy.

The recovery unit uses USD technology to separate “the thinner that has been added to the raw bitumen in the production process,” according to USD. “[I]t returns the recovered diluent for reuse in the Alberta market, reducing the cost of delivering the diluent, and this creates DRUbit ™. The company explains that DRUbit ™ is “crude oil or bitumen that has been reduced to a more concentrated and viscous state”. It “does not meet any of the categories of dangerous goods defined by the US DOT Dangerous Goods Regulations and the Canadian Transportation of Dangerous Goods Regulations”, according to the USD, which calls DRUbit ™ “a market access solution. which will meet the demand for Canadian heavy crude oil on the US Gulf of Mexico coast and other markets at an economically competitive cost with the crude oil that is transported today by pipeline.

The Hardisty Energy Terminal is located adjacent to USD’s existing Hardisty Rail Terminal, which is the original terminal for the transshipment of DRUbit ™ onto railcars for shipment. According to USD. The DRUbit ™ is owned by ConocoPhillips.

According to USD, the DRUbit ™ by Rail ™ network is supported by Canadian Pacific (CP) and Kansas City Southern (KCS).

USD CEO Dan Borgen

“Our DRU [diluent recovery unit] Separation technology and the DRUbit ™ by Rail ™ network create a unique infrastructure to transport Canadian heavy crude throughout North America in a safe, environmentally beneficial and cost-effective manner over pipelines current alternatives, ”said Dan Borgen, CEO of USD. . “We are delighted to be working with ConocoPhillips Canada, Gibson, CP and KCS to deliver this industrial solution that we believe will have a positive impact on our current and future producer and refiner customers. “

Gibson Chairman and CEO Steve Spaulding

“We were delighted to see Hardisty’s energy terminal fully operational, within budgeted capital cost,” said Gibson President and CEO Steve Spaulding. “We view DRUs as a cost-effective, scalable and environmentally attractive long-term exit solution for the basin, and we remain in commercial talks for potential additional phases at the Hardisty energy terminal. Importantly, we believe that this phase and future phases will improve the net income of producers, by stimulating the increase of oil fields and related business activities, creating new jobs and helping to revive communities. “

Bij Agarwal, President of ConocoPhillips Canada

“The use of DRU separation technology and the DRUbit ™ by Rail ™ network improves net revenues and overall returns as we shift our bitumen production to high value-added North American markets,” said Bij Agarwal , President of ConocoPhillips Canada.

“The launch of DRUbit ™ by Rail ™ on the CP network helps us meet key sustainability goals while creating new savings for customers,” said Keith Creel, President and CEO of CP. “CP is proud to work with USD and Gibson to make this innovative terminal a success. “

“KCS is pleased to be a strategic partner in this innovative solution to improve the safety and economics of crude oil transportation,” said Patrick J. Ottensmeyer, President and CEO of KCS. “This is also a great opportunity to develop our business in the Gulf Coast region and further develop our strategic presence in the Port Arthur market. “

Keith Creel, President and CEO of CP (left), and Pat Ottensmeyer, President and CEO of KCS, are Railway Age’s 2022 Railroaders of the Year.
Categories: Class I, Freight, Intermodal, News, Commutation & Terminal
Keywords: Latest News, Canadian Pacific, ConocoPhillips, CP, Gibson, Gibson Energy, Kansas City Southern, KCS, US Development Group, USD

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