USD Partners has announced that it has entered into a four-year extension with a Canadian-based, oil infrastructure focused company at its Hardisty terminal.
The customer has significantly increased its position by more than doubling its contracted capacity at the terminal. The extension contains consistent take-or-pay terms with average minimum monthly payments and rates that exceed those of the original terminalling services agreement (TSA) with this customer.
To date, the partnership has renewed and extended approximately 65% of the capacity at its Hardisty terminal through mid-2022, with approximately 42% extended through mid-2023.
Additionally, USD Group LLC (USDG) confirmed, pursuant to its development rights at the Hardisty terminal, that it is moving forward with the Hardisty South expansion. The existing Hardisty terminal, which is owned by the partnership, has designed capacity for two unit trains per day, or approximately 150 000 bpd.
Hardisty South, which is owned by USDG, will add one unit train per day, or approximately 75 000 bpd, of takeaway capacity to the terminal by modifying the existing loading rack and building additional infrastructure and trackage. The project is expected to be in-service by 1 January 2019.
To date, approximately 67% of Hardisty South’s capacity has been commercialised through take-or-pay agreements with minimum volume commitments, which are expected to generate an average of approximately US$11.1 million of cash flow over the next four years for USDG.
Read the article online at: https://www.tanksterminals.com/terminals/13112018/usd-partners-provides-update-on-hardisty-terminal/