Monday, August 07, 2017

Frac sand transload locating on UP line

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Solaris Oilfield Infrastructure announced a new seven-year contract with an unnamed major customer to handle frac sand unit trains through a transload facility it is developing on the Union Pacific Railroad in Kingfisher, central Oklahoma.

Volumes of sand and similar materials, known as proppant, for drilling have been rising even as commodity prices have fluctuated over the past several years, Solaris noted, driven by improved well productivity from greater proppant loadings. This in turn has boosted utilization of existing equipment, as well as manufacturing of new railcars for sand service.

The Kingfisher Facility will be located on 300 acres directly on the Union Pacific, serving drilling fields in southcentral Oklahoma. Solaris, based in Houston, expects to break ground this month. The facility is designed to service multiple large volume customers with dedicated storage and unit train loop tracks, as well as direct rail-to-truck transloading.

The $40-million, Phase One construction will consist of an 8,000-foot unit-train loop; 30,000 tons of high efficiency silo storage and an additional 18,000 feet of rail sidetrack. The operator’s contracted minimum volumes represent less than 50% of the operational capacity of the Phase One infrastructure. Completion is scheduled for August, 2018.

“Since the formation of Solaris, our focus has been helping customers streamline supply chains to drive down costs,” said Greg Lanham, Chief Executive of Solaris. “Our industry-leading well site proppant management systems allow customers to better manage proppant inventory levels at the well site and last-mile trucking. The Kingfisher Facility is a natural extension of our business, as we expand one step further through the supply chain and continue to facilitate the flow of increasing volumes of proppant across the industry.”