Gallup Land Parters to build new Energy Logistics Park near Gallup, NM

11 Sep 2014

Press Release

Gallup Land Partners to build new Energy Logistics Park near Gallup, NM

Phase I is $40M Crude Oil Transload Facility

Gallup, NM - Gallup Land Partners, LLC announced plans today to build the first integrated Energy Logistics Park in the state of New Mexico, to be located 5 miles northwest of Gallup, NM, with an immediate first phase to include development of a crude oil transload facility.

The Gallup Energy Logistics Park is a 2000-acre master-planned business park anchored by a state-of-the-art crude oil transload facility; the first and only such facility in New Mexico to anchor an Energy Logistics Park on the BNSF Railway TransCon line.

The Gallup Energy Logistics Park will be accessible through US Hwy 491, which the state of New Mexico recently allocated $80M to complete the remaining 29 miles of four-laning, and is 8 miles from Interstate I-40.   Carbon Coal Road, north of the city of Gallup will connect the Energy Logistics Park to US Hwy 491, allowing traffic to bypass the city of Gallup providing further transportation efficiencies.

To be located on a 350-acre site within the Gallup Energy Logistics Park, the crude oil transload facility has been designed to accommodate the growing crude oil production in the San Juan Basin. The transload facility will be located on a private rail spur controlled by Gallup Land Partners. The BNSF Railway will serve the facility.

Referred to as ‘Transload Facility A’, the facility will be the largest crude oil transload facility in northwest New Mexico. The facility design includes two loop tracks; a double sided 13 car-spot loading platform capable of loading a unit train in about 14 hours; 6 truck unloading bays, and barrel storage  capable of storing up to 100,000 barrels. The rail facility will have the ability to off load 72,000 barrels per day onto the BNSF rail line.

Capital costs for the crude oil transload facility is estimated at $40M and Gallup Land Partners will not seek public financing.

“We are thrilled to have a crude oil transload facility coming to the Gallup Energy Logistics Park”, said Greater Gallup EDC Executive Director Patty Lundstrom. “It’s a testament to their optimism about the economy of northwest New Mexico and their confidence in Gallup and McKinley County that Gallup Land Partners are investing so significantly in our community”.

Gallup Land Partners’ significant investment in this new facility will not only make this one of most efficient crude oil transload facilities in the state of New Mexico, but it will also help enhance northwest New Mexico’s position in the global economy by offering businesses operating in the San Juan Basin a more flexible, long-term, and economical option to ship crude oil to destination markets throughout the East, West and Gulf Coasts.

Gallup Land Partners will continue to work with the BNSF Railway, McKinley County, City of Gallup and Greater Gallup Economic Development Corporation to develop the unit train capable facility. The investment will allow the Gallup Energy Logistics Park to ship four to five unit trains per week and offers a unique, long-term and economical takeaway opportunity for San Juan Basin crude oil production.

Gallup Land Partners plans to break ground at the site within 90 days. Direct truck-to-train transload service will begin during the 4th quarter of 2015.