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JP Energy announce ethanol unit train project and pipeline agreement

Published by , Editorial Assistant
Tanks and Terminals,

JP Energy Partners LP (JP Energy) has announced that it has initiated the expansion of its existing rail facilities at its North Little Rock refined products terminal to allow for unit train deliveries of ethanol. The upgrades will materially improve the terminal’s ethanol offloading efficiency and capacity, allowing for offloading of up to 108 car unit trains. The expansion project will utilise existing infrastructure at the site, including up to 4.5 million gal. of ethanol storage and will be capable of blending and distributing up to 9 million gal./month. The terminal offers a full suite of blending capabilities onsite allowing customers to select conventional blends, E15, E85, or E100 Product access is available 24 hours a day, seven days a week.

Separately, JP Energy has executed an interconnection agreement with an affiliate of Magellan Midstream Partners, L.P. (Magellan) to connect JP Energy’s North Little Rock refined products terminal to Magellan’s Little Rock pipeline. The interconnection will allow JP Energy’s customers to deliver to the terminal via Enterprise Product Partners’ TEPPCO pipeline or Magellan’s Little Rock pipeline, providing access to both Gulf Coast and Midcontinent refineries.

The capital cost of both projects is estimated at approximately US$5 million and was included in JP Energy’s previously disclosed full year 2016 growth capital expenditure estimate of US$25 - 35 million.

“We are excited to announce these two key enhancements to our North Little Rock terminal,” said J. Patrick Barley, Executive Chairman and Chief Executive Officer of JP Energy. “The Magellan interconnection will provide our customers with greater operational flexibility for product deliveries from multiple production zones. Our ability to leverage our existing infrastructure at the site will allow us to provide the lowest cost ethanol in Central Arkansas and beyond.”

Both projects are expected to be in service during 2Q16.

Adapted from press release by Francesca Brindle

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