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LEG to open NGL facility and storage

Published by , Editorial Assistant
Tanks and Terminals,

Lodestar Energy Group (LEG) is developing a new multi-modal site at the Gulf Inland Logistics Park near Dayton, Texas. The logistically advantaged site will contain two facilities: a rail served natural gas liquids (NGL) facility and a complementary rail car storage yard.

"This is the perfect time to open both an NGL rail facility and an independent rail car storage facility due to the unprecedented growth in the energy and petrochemical markets," said Brad Howell, President of Lodestar Energy Group. "The growing supply of natural gas liquids has enhanced the low cost position of US chemical manufacturers, and the resulting derivative production requires a well positioned rail car storage yard with direct rail access for users to cost effectively serve their markets." The facility will receive direct rail carrier service from the BNSF Railway and the Union Pacific Railroad.

The unit train capable NGL facility, scheduled to open in the 2Q18, will receive and ship purity products such as propane and butane as well as mixed streams. Additionally, the NGL facility will include storage and have pipeline access to the Mont Belvieu industrial complex. Truck loading/unloading in addition to chemical processing and handling capabilities are included in the site master plan.

Lodestar's rail served NGL facility will be open to all parties, allowing market flexibility for producers and marketers while providing direct access to a larger number of markets for their products. Due to its advantaged location, the facility can handle unit train volumes without creating additional rail congestion in the Mont Belvieu industrial complex. Furthermore, the ability to receive products from multiple producing regions will provide valuable sourcing options for customers. The phased construction of the project will allow for shorter contract terms and lower volume commitments when compared to traditional pipeline projects.

Adapted from press release by Francesca Brindle

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