Energy logistics company US Development Group (USDG) is building a multi-modal oil handling terminal in Port Arthur, Texas, at a cost of $130 million.

The terminal size has not been revealed, but it will have rail unloading, marine barge loading and unloading facilities, tank storage and blending, and a pipeline connection to the nearby Phillips 66 Beaumont Terminal.

Dan Borgen, USDG CEO and president, said: “USDG is pleased to be part of the Port Arthur community and construct the first-of-its-kind destination terminal. By giving producers in the Canadian oil sands a safe and efficient means of transporting product to US Gulf Coast refineries and manufacturers, we anticipate the new terminal will represent a long-term investment for USDG with continued growth.”

It is being developed through a new subsidiary, Port Arthur Terminal, and is specially designed to handle DRUbit, USDG’s proprietary blend of Canadian heavy crude formulated to be non-hazardous and non-flammable for rail transport.

The terminal site is located near key infrastructure and waterways. USDG says that it will allow Canadian heavy crude from north-western tar sands to reach Gulf Coast markets, and replace other imported, more expensive feedstocks.

As well as DRUbit, the terminal will be able to handle other bulk liquids such as refined products, feedstocks, intermediates, chemicals, and biofuels, as well as dry-bulk aggregates, laydown storage, and railcar storage-in-transit (SIT). It is expected to be completed in Q2 2021 and will generate 1,200 construction jobs and 40 full-time jobs when operational.

Borgen added: “We look forward to playing a role in the economic prosperity of Port Arthur and Jefferson County in the coming years. Moreover, USDG’s patented DRUbit process produces a non-hazardous transportation product that has great economic benefits for Port Arthur area refineries.”

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18th December 2020