USD plans first phase of Houston crude terminal
OREANDA-NEWS. The first phase of USD Group's planned crude terminal on the Houston Ship Channel will likely include storage tanks and dock capacity.
The infrastructure company did not give further details on the initial phase, but said that the terminal could eventually include up to 10mn bl of storage, multiple docks with barge and deep water capabilities, and a rail terminal with capacity to handle multiple unit trains per day.
USD is engaged in commercial discussions with potential customers including refineries, producers, marketers and other infrastructure companies, USD Partners chief executive Dan Borgen said on an earnings call.
Shipping and deepwater access is becoming more prevalent in the discussions after the US in December lifted a ban on most crude exports.
"Some of them want more water access. Some of them want more dock capacity. Obviously docks and tanks go hand-in-hand," Borgen said.
The terminal, a joint effort with Pinto Realty Partners, would sit on a 988-acre site near the mouth of Buffalo Bayou. It would be connected to both Union Pacific and BNSF railroads.
Other infrastructure companies such as Magellan, LBC Tank Terminals, and NuStar are also building crude storage and loading facilities along the US Gulf coast as they adapt to robust shale output and rising interest in US exports.
One of the largest midstream companies, Enterprise Products Partners, acquired 12 marine docks and 24mn bl of crude storage as part of its 2014 merger with Oiltanking Partners.
USD said today that operations at its terminal in Hardisty, Alberta, should not see any impact from the wildfires raging in the northern region of the province. The Hardisty terminal is about 400 miles (644km) south from the affected area.
Комментарии