June 11, 2018 [Oil & Gas 360º] - USD Group LLC (“USD”) and USD Partners LP (NYSE: USDP) (the “Partnership”) announced that USD has executed a five-year, take-or-pay terminalling services agreement with a high quality refiner customer.
The agreement is for trans-loading capacity at the Hardisty rail terminal with an expected start date in late 2018.
“We are pleased to announce the execution of a five-year, take-or-pay contract with a new refiner customer at Hardisty to meet their near term need for capacity,” said Dan Borgen, USD’s Chief Executive Officer.
“As we mentioned on the Partnership’s most recent earnings call, customer activity at the Hardisty origination terminal has ramped significantly over the past several months and current market demand remains strong, exceeding the available capacity at the terminal today.
This new agreement could support the construction of additional capacity at the Hardisty terminal pursuant to USD’s existing development rights, or be serviced out of the Partnership’s existing facility, to the extent excess capacity becomes available.”
USD is also in discussions with a number of current customers of the Partnership’s Hardisty terminal for early renewals or extensions of their agreements.
“Our existing customers’ interest in negotiating extended, long-term commitments at Hardisty well in advance of their existing contract expirations strongly validates our strategic commercial vision, and we are working hard to reach mutually agreeable terms to extend these agreements,” stated Jim Albertson, USD’s Senior Vice President, Canadian Business Unit.
“We look forward to updating the market with our progress in the near future.”
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