USD Partners enters into five-year Terminal Services Agreement
Published by Bella Weetch,
Editorial Assistant
Tanks and Terminals,
USD Partners LP has announced that it has entered into a five-year Terminal Services Agreement with a minimum monthly throughput commitment with a major ethanol producer at its West Colton, California, US terminal, effective 1 January 2022. This contract replaces an existing short-term contract at the terminal and is expected to add incremental net cash from operating activities and adjusted EBITDA of approximately US$1 million to US$1.5 million per year, subject to changes in expected throughput.
Additionally, the partnership has commenced renewable diesel operations at its West Colton Terminal and the previously announced five-year Terminal Services Agreement with USD Clean Fuels LLC (USDCF) became effective on 1 December 2021. As previously stated, this agreement is supported by a minimum throughput commitment to USDCF from an investment-grade rated, refining customer, as well as a performance guarantee from US Development Group, LLC – the partnership’s sponsor.
“We are excited to announce this renewed long-term partnership at our West Colton Terminal. We believe the extended contract term, combined with the expansion and long-term commitment in renewable diesel handling, speaks to our strategically advantaged portfolio of assets,” said Brad Sanders, Executive Vice President and Chief Commercial Officer for USD. “We are committed to the transition into sustainable fuels and see our USD Clean Fuels business as a strong growth platform for USD and potentially, the partnership. We look forward to future announcements of continued growth within clean fuels.”
Read the article online at: https://www.tanksterminals.com/terminals/26012022/usd-partners-enters-into-five-year-terminal-services-agreement/
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