USD Partners and ConocoPhillips Canada have agreed long-term, multi-year renewals for the remaining capacity at USD’s Hardisty Terminal.
Including these recent renewals, the partnership has executed multi-year extensions for 100 per cent of the capacity at its Hardisty Terminal.
Also, 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 second quarter of 2021. 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.
Additionally, ConocoPhillips Canada entered into renewals and extensions of the terminalling services agreements that cover 100 per cent of the Partnership’s destination capacity at the Stroud terminal, commencing in January and June 2020.
Dan Borgen, the Partnership’s Chief Executive Officer, commented: “We are committed to working with our customers and our transportation partners to create sustainable solutions for shipping Canadian crude oil to the U.S., 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.”
For more information visit www.usdpartners.com