| Dow Chemical selling Sarnia lands
2009-11-25
By Tyler Kula, www.theobserver.ca The Observer
Calgary-based Provident Energy Trust is buying 1,000 acres on the former Dow Chemical site together with a cavern storage that will be used to store hydrocarbon products. The 12.1-million barrel storage facility will be used to house natural gas liquids, including butane and propane, said Provident's Dallas McConnell. "The Sarnia area is strategically located," he said. "We'll be able to reach premium markets in the northeast United States as well as the local Sarnia area."
McConnell said the company, which already has a marketing building in Sarnia, will use the facility to house its own products, and as a fee-for-service storage facility for other companies. About $17 million has been earmarked for expansion of existing rail facilities, facility maintenance and construction of a truck loading terminal at the Sarnia site. Currently, the facility has 13 pipeline connections and a small rail offloading facility.
McConnell said local labour will be used in the construction and that the company has already spoken with contracting firms.
The deal is expected to close in early 2010.
Observer Article ID# 2193038
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