Company Plans $150 Million Terminal for Canadian Crude
12.21.2020 - NEWS

December 21, 2020 [Beaumont Enterprise] – An oil and gas development firm with assets across North America is previewing plans for a new $150 million terminal in Port Arthur after almost a year of planning.

Houston-based US Development Group announced this week it will move ahead with plans for the 320-acre facility near the Motiva Enterprises refinery on the banks of the Sabine-Neches Waterway.

The project is being developed through USD Group’s Port Arthur Terminal company, and it is expected to create more than 40 permanent jobs, according to the company. It also could generate more than 1,200 direct and indirect construction jobs by the time of its expected completion in the second quarter of next year.

“USDG is pleased to be part of the Port Arthur community and construct the first-of-its-kind destination terminal,” CEO and president Dan Borgen said in a statement. “By giving producers in the Canadian oil sands a safe and efficient means of transporting product to U.S. Gulf Coast refineries and manufacturers, we anticipate the new terminal will represent a long-term investment for USDG with continued growth.”

HDR Inc., an engineering and design firm headquartered in Nebraska, was announced as the lead on engineering, procurement and construction for the terminal in November after handling design studies and foundational work for the project. Representatives for the company told The Enterprise construction began in September with HDR at the helm before the announcement.

The terminal will have three units that can hold 120 train cars each, with stations to unload 60 cars at a time. It will also have three storage tanks and the ability to mix products to pipeline grade for transport.

The terminal will be served by Kansas City Southern.

The terminal is part of plans highlighted since at least last December when USD Group announced a partnership with Gibson Energy to create a facility in Alberta, Canada, that would largely be used to produce a trademarked blend of heavy crude called DRUbit that would be sent to the U.S. Gulf Coast by train.

Construction on the Canadian project was expected to begin sometime in April and could be completed at around the same time as the terminal.

The terminal will have the ability to send products to several refiners and plants in Southeast Texas and on the Louisiana coast through pipeline, as well as access to the Sabine-Neches Waterway by barge. There already is a specific client with assets close to Port Arthur that will benefit from its completion.

When the company announced its Canadian project, it also disclosed an agreement with ConocoPhillips Canada to process 50,000 barrels per day of inlet bitumen blend that will be shipped to the Port Arthur terminal.

Once in Port Arthur, it can be easily sent to the Phillips 66 terminal in Beaumont where it could be blended into more profitable products.

The site will also have built-in opportunities for expansion to handle other bulk-liquid commodities, laydown storage or rail-car storage so it can grow as future demand increases.

Jefferson County Judge Jeff Branick said the county embraced the project and USD Group.

“We were able to come together for a common purpose that will benefit Jefferson County citizens and the local oil industry alike,” Branick said in a statement. “The completed facility will have an ongoing positive economic impact on this community.”
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