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BNSF gears up for first crude unit trains from New Mexico


BNSF will begin shipping crude oil in unit trains from New Mexico for the first time later this year, following completion of expansion work at a transload facility in Carlsbad, N.M.

Improvements to the existing crude oil facility, owned by Cetane Energy LLC, include rail expansion to accommodate unit train loading, additional railcar-loading stations and a long-term crude-oil gathering system from local producers.

Once the improvements are complete by early fall, BNSF expects to haul a minimum of 100 cars - about 70,000 barrels - of crude oil per week from the Carlsbad facility to a new crude oil terminal in New Orleans, owned and operated by Murex LLC. According to a recent announcement by Murex and Cetane, the companies have increased crude oil storage capacity by 40,000 barrels and added 12 tank truck unloading stations and additional custody transfer meters at Carlsbad during the past year. Also under way is planned capital work adding 20,000 feet of track.

"We look forward to working with Murex and Cetane to provide unit-train service out of New Mexico," said Dave Garin, BNSF group vice president, Industrial Products, in a prepared statement. "Today, rail is providing a more flexible, long-term, and economical option to ship crude oil to destination markets throughout the East, West and Gulf coasts, and along the Mississippi River."

"We have worked closely with BNSF Railway, and the Southwest Railroad [a connecting shortline] to ensure that our rail facility will be absolutely state of the art. We have made significant improvements over the past year and look forward to the commencement of unit train service at Cetane," said Robert Wright, president of Murex LLC, in a news release.

BNSF plans to continue expanding its presence in New Mexico and the Permian Basin.

In March 2013, Rangeland announced plans for facilities near Loving, N.M., that will also be served by BNSF.

BNSF Headquarters

BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000

For more information on the company and its transportation solutions, visit the BNSF Web site at www.bnsf.com

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