USD Partners has executed long-term, multi-year renewals for the remaining capacity at its Hardisty Terminal with ConocoPhillips Canada.
As a result, the company has executed multi-year extensions for 100% of the capacity at the terminal. In association with its sponsor’s recently announced joint venture with Gibson Energy to build a diluent recovery unit adjacent to the terminal, a material amount of capacity at the facility 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 terminaling services agreement with the customer.
ConocoPhillips Canada entered into renewals and extensions of the terminaling services agreements that cover 100% of the company’s destination capacity at the Stroud terminal, commencing in January and June 2020.
Dan Borgen, USD’s CEO, says: ‘We are pleased to announce the first step in accomplishing our vision of successfully converting heavy crude oil out of Western Canada into DRUbit. This transaction creates long-term cash flow at the partnership. We are committed to working with our customers and our transportation partners to create sustainable solutions for shipping Canadian crude oil to the US, including our expanding network of Gulf Coast destination terminals.