USD Partners acquires crude oil terminal in Oklahoma

USD Partners LP has purchased a crude oil terminal in Stroud, Oklahoma for $25m. It will facilitate rail-to-pipeline shipments of crude oil from the Partnership’s Hardisty terminal in Western Canada to the Cushing, Oklahoma, crude oil hub.

As part of the transaction, the partnership has extended the term of take-or-pay terminalling services agreements related to 25% of the Hardisty terminal’s available capacity by approximately one year.

Concurrent with the acquisition, the Partnership entered into a new multi-year, take-or-pay terminalling services agreement with an investment grade rated, multi-national energy company for the use of approximately 50% of the Stroud terminal’s available capacity. The term of this agreement is scheduled to begin on October 1, 2017, and to conclude in June, 2020.

USD Partner’s Chief Executive Officer, Dan Borgen said: “We are proud to announce the successful repositioning of an underutilized asset to create a competitive network solution for our new customer’s growing oil sands production. Our Hardisty to Stroud rail solution delivers immediate takeaway capacity, preserves the integrity of our customer’s heavy barrels and enables substantial end market optionality at Cushing with available pipeline capacity to the Gulf Coast.”

Vice President, Commercial Development – Canada, Jim Albertson said: “This transaction reinforces the strategic positioning of our Hardisty asset and confirms our long-held view that rail will continue as an important component of midstream transportation infrastructure in Western Canada. We expect the pairing of the Stroud destination terminal with our advantaged origination terminals will drive additional commercial opportunities, particularly as we approach another cycle where growing crude oil production from Western Canada will exceed available takeaway capacity.”

For more information visit www.usdpartners.com

11th June 2017