CARLSBAD, N.M. (AP) — A Texas company has begun construction on a rail hub to help bring supplies in and take oil and gas out of the heart of southeastern New Mexico's booming energy country.
Rangeland Energy began construction on its 300-acre "Rio Hub" near Loving in Eddy County on Tuesday.
The company says crude oil marketers, refiners and producers have lined up to pay Rangeland Energy to use the hub, which will help bring fracking sand in and ship oil and gas out of the Delaware Basin oil fields.
"We've had a great reception in Loving and Carlsbad and we're excited to kick off construction," Chris Keene, Rangeland Energy's president and CEO, told the Carlsbad Current-Argus. "Certainly the area within a 75-mile radius will greatly benefit producers and marketers."
Served by the BNSF railway, the 300-acre rail terminal will provide storage, blending and rail loading facilities for outbound crude, as well as unloading, storage and truck loading areas for fracking sand and other supplies.
The company in a statement said truck-to-rail loading operations are expected to begin in October, with an initial capacity of 10,000 barrels per day. As customer demand increases, Rangeland said it will build high-speed loading facilities that will bring capacity to more than 100,000 barrels per day.
Initial rail-to-truck loading service will accommodate more than 500,000 tons of sand per year. Plans are to expand that to accommodate more than 1 million tons of sand per year.
New Mexico Gov. Susana Martinez applauded the company's investment in the state.
"The services Rangeland will provide will further increase New Mexico's ability to develop its energy sources, grow our economy and continue to provide very well-paying jobs for New Mexico families," she said in a statement.