The major components of this attractive growth project are:
-- Two 120,000 barrel bitumen blend storage tanks-- A 10 kilometre 24" bitumen blend pipeline capable of transferring more than 150,000 barrels per day to the Bruderheim terminal-- A 12" condensate line in the same right of way capable of transferring up to 150,000 barrels of condensate per day from the Bruderheim terminal-- Rail loading facilities capable of loading 72,000 barrels in approximately 16 hours-- More than 5 kilometers of 'loop track' that will allow Canexus to manage two unit trains at the terminal at the same time-- An additional 6.3 kilometres of track in a rail spur to allow unit trains to re-enter the mainline efficiently and to facilitate the transloading of other tank cars that do not form a full unit train. With the additional track, Canexus expects to be able to store up to 600 railcars for hydrocarbon service at its Bruderheim Terminal-- A potential second pipeline connection for both bitumen blend and condensate.
"We are very excited about this next phase of expansion at Bruderheim. Not only is this project expected to be accretive to all common shareholders, it also sets the stage for future incremental unit train capability, utilization of the existing 1.6 million barrels of salt cavern storage, development of additional salt cavern storage and pursuit of other attractive investment opportunities at this 480 acre site," said Mr. Kubera.
North America Sodium Chlorate
As expected, major pulp producers have made successive, albeit modest price increases in the first two months of Q4 taking advantage of favorable inventory levels. Combined pulp inventories are in line with historical norms at 33 days (October) despite significant differences between softwood and hardwood. Softwood pulp inventory levels are at their lowest levels (25 days) in more than 18 months. However, hardwood pulp inventories remain relatively high at 41 days, and suggest little room for price increases by hardwood producers. Global pulp shipments continued their positive trend for the year, increasing by 2.9% year-to-date. Most of this growth is fueled by strong Chinese imports which are higher by 14.0% year-to-date. Demand for most pulp segments is expected to remain strong for the rest of the year.
Production of North American bleached pulp has remained steady throughout the year, and, consequently, the demand for sodium chlorate has been equally stable. With new demand recently started in Q3 coupled with further new demand scheduled for Q4, the North American chlorate industry is poised to maintain its high operating rates (+/-95%) for the foreseeable future.
North America Chlor-alkali
The North American chlor-alkali industry is operating at 78% of capacity in the fourth quarter of 2012, compared with 85% in the prior quarter and 78% in the fourth quarter of 2011. The decrease in industry capacity utilization is due to reduced seasonal demand for water treatment and production of PVC for export. Industry operating rates are expected to remain at this level through the first quarter of 2013 and then increase modestly with expected economic improvement.
North American hydrochloric acid production has been reduced in the fourth quarter of 2012 due to annual maintenance outages at byproduct producers in the gulf coast region. Acid demand is improving due to increased oil well fracturing activity in Western Canada. Demand from well fracturing is expected to strengthen modestly in Q1 2013.