Texas Deepwater Deer Park Terminal has entered a lease agreement with Shell Oil Products to retrofit and refurbish the Deer Park rail terminal to load refined products on the Houston Ship Channel.
Upon completion of the project the terminal will have the capability to load up to 48 railcars per day, which is around 33,000 barrels of refined products per day. It is equipped with two operational tanks with 50,000 barrels of total storage capacity, which will service the railcar loading rack at the terminal with direct pipeline connectivity to Deer Park refinery and the Colex products terminal.
Shell Oil Products affiliate Shell Trading also entered into a related diesel supply agreement with an affiliate of USD Group.
The renovated terminal is expected to begin operations during the second quarter of 2019, as one of the most advantaged and efficient rail loading terminals on the Houston Ship Channel.
Once complete, Texas Deepwater Deer Park terminal will continue to lease and operate the Deer Park rail terminal facility under a long-term agreement with Shell Oil Products. While the initial focus will be on loading diesel into railcars, there may be a potential to further expand the rail terminal by adding incremental storage capacity and rail loading capabilities to handle additional refined products.
Odeh Khoury, vice president, Shell products trading & supply Americas, says: ‘This is an exciting opportunity to work jointly with Texas Deepwater Deer Park terminal to operationalize a long-idled asset as we continue to see diesel demand growth in many markets. This project further increases our integration with Shell’s joint venture in the Deer Park refinery and enables us to further optimise our integrated value.’
Larry Ruple, Texas Deepwater Deer Park terminal executive vice president of business development, adds: ‘We are excited for the opportunity to work with Shell on this project, and for the value it creates by adding the much-needed takeaway capacity for refined products in the strategic Houston Ship Channel market.’