Dakota Plains to build third oil storage tank at rail terminal

Sept 2 Tue Sep 2, 2014 9:36am EDT

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Sept 2 (Reuters) - Dakota Plains Holdings Inc said on Tuesday it would build a third, 90,000-barrel storage tank for Bakken crude oil at its Pioneer Rail Terminal in North Dakota.

The expansion, which will cost $5.5 million, will boost the terminal's storage capacity to 270,000 barrels.

The Pioneer terminal in New Town, North Dakota, on the Fort Berthold Indian Reservation, collects crude oil from delivery trucks, stores the oil, and then loads it onto rail cars for export.

Dakota Plains, together with joint venture partner World Fuel Services Corp, says the new capacity is needed as Hiland Partners is about to open a new pipeline and Canadian Pacific boosts rail capacity in the region.

Hiland Partners, a privately-held midstream company chaired by Continental Resources Inc Chief Executive Harold Hamm, is building its 450-mile (724 km), 50,000 barrel-per-day Double H pipeline from Dore, North Dakota, to Guernsey, Wyoming.

(Reporting by Ernest Scheyder; Editing by Paul Simao)

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