terminal news
Genesis Energy to expand operations in Louisiana Texas-headquartered midstream energy company Genesis Energy is expanding its presence in Louisiana with the construction of new assets and infrastructure worth approximately $125 million (€92 million). The additional infrastructure will connect to ExxonMobil’s refinery in Baton Rouge, one of the largest in North America, with a refining capacity of over 500,000 bpd. The project will see the company upgrade its existing Port Hudson-based terminal and build a new 18 mile, 20” diameter crude oil pipeline to connect it to the Baton Rouge Maryland Terminal. It will have a capacity of 350,000 bpd. Improvement works include an addition of storage, increasing the terminal’s 216,000-barrel capacity by a further 200,000 barrels, and improvements to its existing barge dock and truck station. Genesis is expected to break ground on the project soon, with the Port Hudson
Genesis Energy’s pipeline will link to ExxonMobil’s Baton Rouge refinery upgrades and new crude oil pipeline to be completed by the end of this year. The company intends to finance the transaction with funds available under its revolving credit facility. It has
PBF Energy crude unloading facility to start operations PBF Energy, a North American refiner, has finished building the second crude oil unloading facility at its subsidiary’s Delaware City Refinery and is due to commence operations. The facility, first announced last year, has a capacity of 70,000 bpd. The inaugural unit train carrying Bakken crude oil is expected to leave the facility shortly, with 17 additional unit trains on schedule to arrive soon after. The completion of this project means the Delaware City rail facilities can handle 110,000 bpd of crude oil – 70,000 of light and 40,000 of heavy. Tom Nimbley, PBF Energy’s CEO, says the completion of this rail facility means his company ‘is now able to deliver significant quantities of cost-advantaged North American crude oils directly to Delaware City at competitive pricing’. In addition, PBF has increased the quantity of Canadian heavy crude oil that its Delaware City refinery can handle and will raise the discharge capacity of the heavy crude rail unloading facility from 40,000 to 80,000 bpd for an estimated $50 million (€37 million). This project, due for approval at a board meeting, will be finalised by the end of this year. Nimbley adds: ‘We believe that Canadian heavy barrels will be the most economic on the market and we intend to take the necessary steps to maximise our exposure to this advantaged crude.’ PBF Energy further announced that it has entered into agreements for an additional 2,000 coiled and insulated rail cars capable of handling heavy crude oil and 500 general purpose cars, due for delivery between 2013 and 2015.
TANK STORAGE • March/April 2013
entered into definitive agreements with ExxonMobil, which will grant Genesis a land lease at the Maryland Terminal site and secure preferential rights for throughput at the facilities.
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