USD Partners announces contract extensions with ConocoPhillips
Published by Tom Mostyn,
Tanks and Terminals,
USD Partners has announced that it has executed long-term, multi-year renewals for the remaining capacity at its Hardisty Terminal with ConocoPhillips Canada. Including these recent renewals, USD has executed multi-year extensions for 100% of the capacity at its Hardisty Terminal.
Additionally, in association with its sponsor’s recently announced joint venture with Gibson Energy Inc. to construct a diluent recovery unit (DRU) adjacent to the Hardisty Terminal, a material amount of the Hardisty Terminal’s current capacity will be extended beyond 2030, pending the successful construction and completion of the DRU. The DRU could be placed into service as early as the 2Q21. The renewals contain take-or-pay terms with minimum monthly payments and rates that are consistent with those of the original terminalling services agreement with the customer.
ConocoPhillips Canada entered into renewals and extensions of the terminalling services agreements that cover 100% of USD’s destination capacity at the Stroud terminal, commencing in January and June 2020.
“We are pleased to announce the first step in accomplishing our vision of successfully converting heavy crude oil out of Western Canada into DRUbitTM. This transaction creates long-term cash flow at the partnership”, said Dan Borgen, the USD Partners’ CEO.
“We are committed to working with our customers and our transportation partners to create sustainable solutions for shipping Canadian crude oil to the US, including our expanding network of Gulf Coast destination terminals. DRUbit offers safety and environmental benefits when transported by rail, provides greater take-away capacity and improved economics for all parties, and we are delighted to see the DRU come to fruition in a competitive and scalable model. We look forward to discussing additional expansions in the near future.”
Read the article online at: https://www.tanksterminals.com/terminals/04122019/usd-partners-announces-contract-extensions-with-conocophillips/
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