USD Partners has entered into a three-year agreement at its Casper Terminal, which involves the construction of an outbound pipeline and new storage tank.
The agreement with a new multi-national, investment grade customer, contains take-o0r-pay terms for terminalling and storage services, as well as fees associated with actual throughput volumes and other services.
The outbound pipeline connection from Casper Terminal will complement its current inbound pipeline connection ot the Express Pipeline and an additional storage tank to facilitate blending and staging operations for the customer. The customer will utlise an existing tank at the terminal for a three-year term and a second tank, once constructed or available, for another three-year term. The construction of the second tank, if needed, is expected to be completed in the second half of 2019.
Randy Balhorn, US development group’s vice president of business development, says: ‘We have mentioned our hub strategy at Casper on previous public earnings calls, and this is the first step in realising that vision. The outbound pipeline connection and additional storage capacity at Casper will contribute to the long-term sustainability of the terminal, giving our customers increased connectivity to various refining centres and pipeline networks.’
Adam Altsuler, the partnership’s chief financial officer adds that the company plans to spend $16 million on the new pipeline connection and storage tank capacity.