The facility being built at Aux Sable's Palermo Conditioning Plant, will have an initial capacity of 5,000 barrels a day as the company deals with the need to transport and process increasing amounts of product coming out of the state's Bakken zone.
The natural gas liquids mix will be injected into the Palermo plant and the Prairie Rose pipeline system for delivery and processing at the company's plant in Channahon, Ill.
This new truck unloading facility is expected to be operational in April 2012 and can be easily expanded to 10,000 barrels a day, Aux Sable said in a release.
"The Palermo plant will be able to accept higher ethane content NGL mixes, is within a modest trucking distance of most field processing plants in the Bakken area and will avoid truck-to-rail transload congestion or delays," the company said.
The Bakken is an oil-rich zone that underlies parts of Saskatchewan, Montana and North Dakota.
Natural gas liquids — such as propane, butane and ethane — are fetching robust prices and tend to track oil prices more closely than conventional natural gas.
Source: Canadian Business