Canadian Railroads > Another CP Energy Related Business Win

CP and Smart Sand announced today a strategic long-term partnership under which the two companies will supply and ship premium, Northern White frac sand from their primary facility on CP's line in Oakdale Wisconsin to the unconventional oil and gas industry in key North America producing regions including the Bakken and Eagle Ford formations, and the Utica and Marcellus Shales

Smart Sand's primary facility, which opened in late June 2012 offers substantial dry sand capacity and 100-plus years of proven reserves, estimated processing capacity of more than 1 million tons a year plus direct rail access for unit trains.

This should turn into a long term supply of good business for CP.

Frac sand and chemicals have become increasingly specialized as firms gain more experience in drilling. Also, unlike many bulk shipments, specialized sands may eventually command a premium price.