USD Partners Announces Increased Connectivity at Its Stroud Terminal at the Cushing Hub
August 16 2021 - 4:21PM
Business Wire
USD Partners LP (NYSE:USDP) (the “Partnership”) announced today
an expansion of the downstream connectivity at its Stroud terminal.
The expansion is being pursued by an affiliate of US Development
Group, LLC pursuant to its development rights at the terminal, and
when completed will add a pipeline connection to a second 300,000
barrel storage tank at a third party facility at the Cushing,
Oklahoma, crude oil hub (the “Cushing Hub”). The expanded
connectivity is expected to facilitate incremental rail-to-pipeline
shipments of crude oil to the Cushing Hub by giving the terminal
better capability to service multiple customers and/or multiple
grades of crude oil simultaneously. The expansion is expected to be
completed in the first quarter of 2022.
“We are excited about the enhanced connectivity at the Stroud
terminal that this additional connection into the Cushing Hub
creates,” said Jim Albertson, Senior Vice President, Commercial
Development – Canada. “This expansion facilitates greater market
access and enhances the Stroud terminal’s ability to increase its
customer base and fee generating commitments.”
The Stroud terminal is located on 76-acres with the ability to
unload one unit train per day and includes two 70,000 barrel onsite
operational storage tanks and one truck bay. Additionally, the
terminal is connected to the Cushing Hub by a 12-inch diameter,
17-mile pipeline today.
“As the only unit train facility connected by pipeline to the
Cushing Hub, this additional connectivity enhances the strategic
value and competitive advantages of our Stroud destination terminal
as a rail-to-pipeline solution for our customers,” said Brad
Sanders, Executive Vice President and Chief Commercial Officer for
USD.
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited
partnership formed in 2014 by US Development Group, LLC (“USD”) to
acquire, develop and operate midstream infrastructure and
complementary logistics solutions for crude oil, biofuels and other
energy-related products. The Partnership generates substantially
all of its operating cash flows from multi-year, take-or-pay
contracts with primarily investment grade customers, including
major integrated oil companies, refiners and marketers. The
Partnership’s principal assets include a network of crude oil
terminals that facilitate the transportation of heavy crude oil
from Western Canada to key demand centers across North America. The
Partnership’s operations include railcar loading and unloading,
storage and blending in on-site tanks, inbound and outbound
pipeline connectivity, truck transloading, as well as other related
logistics services. In addition, the Partnership provides customers
with leased railcars and fleet services to facilitate the
transportation of liquid hydrocarbons and biofuels by rail.
USD, which owns the general partner of USD Partners LP, is
engaged in designing, developing, owning, and managing large-scale
multi-modal logistics centers and energy-related infrastructure
across North America. USD solutions create flexible market access
for customers in significant growth areas and key demand centers,
including Western Canada, the U.S. Gulf Coast and Mexico. Among
other projects, USDG, along with its partner Gibson Energy, Inc.,
is pursuing long-term solutions to transport heavier grades of
crude oil produced in Western Canada through the construction of a
Diluent Recovery Unit at the Hardisty terminal. USDG is also
currently pursuing the development of a premier energy logistics
terminal on the Houston Ship Channel with capacity for substantial
tank storage, multiple docks (including barge and deepwater),
inbound and outbound pipeline connectivity, as well as a rail
terminal with unit train capabilities. For additional information,
please visit texasdeepwater.com. Information on websites referenced
in this release is not part of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws, including statements
with respect to the timing of the completion of the Stroud terminal
expansion project and whether and to what extent that the expansion
project will increase the customer base, contracted cash flows,
strategic value or competitive advantages of the Stroud terminal.
Words and phrases such as “plans,” “expects,” “will,” “would,”
“believes,” and similar expressions are used to identify such
forward-looking statements. However, the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements relating to the Partnership are based on
management’s expectations, estimates and projections about the
Partnership, its interests and the energy industry in general on
the date this press release was issued. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements.
Factors that could cause actual results or events to differ
materially from those described in the forward-looking statements
include the impact of the novel coronavirus (COVID-19) pandemic and
related economic downturn and changes in general economic
conditions and commodity prices, as well as those factors set forth
under the heading “Risk Factors” and elsewhere in the Partnership’s
most recent Annual Report on Form 10-K and in the Partnership’s
subsequent filings with the Securities and Exchange Commission
(many of which may be amplified by the COVID-19 pandemic and the
significant reductions in demand for, and fluctuations in the
prices of, crude oil, natural gas and natural gas liquids). The
Partnership is under no obligation (and expressly disclaims any
such obligation) to update or alter its forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Category: Operations
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version on businesswire.com: https://www.businesswire.com/news/home/20210816005683/en/
Adam Altsuler, 281-291-3995 Executive Vice President, Chief
Financial Officer aaltsuler@usdg.com
Jennifer Waller, 832-991-8383 Director, Financial Reporting
& Investor Relations jwaller@usdg.com
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