Genesis Energy, L.P. Announces Expansion of Existing Gulf Coast Terminal Infrastructure, New Crude Oil Pipeline and New Unit Train Facility
Genesis Energy, L.P. (NYSE: GEL) today announced the company plans to
invest approximately $125 million to improve existing assets and develop
new infrastructure in Louisiana to connect into Exxon Mobil
Corporation′s (NYSE: XOM) Baton Rouge Refinery, one of the largest
refinery complexes in North America with more than 500,000 barrels per
day of refining capacity. The project is expected to generate positive
economic benefits both for the community of Baton Rouge and the state of
Louisiana.
'With the expansion of our operations in Louisiana, Genesis looks
forward to a strong future in the state and to increasing our
contribution to the local economy,? Genesis Chief Executive Officer
Grant Sims said. 'This project positions Genesis as an efficient conduit
for crude oil supply and logistics in the region.?
Genesis will improve its existing terminal at Port Hudson, Louisiana and
build a new 18 mile 20? diameter crude oil pipeline connecting Port
Hudson to the Maryland Terminal and continuing downstream to the
Anchorage Tank Farm. The company also plans to build a new crude oil
unit train facility at the Baton Rouge Maryland Terminal.
At Port Hudson, Genesis will construct approximately 200,000 barrels of
storage capacity to complement its 216,000 barrels of existing tank
capacity and make improvements to its existing barge dock and truck
station. The new 18 mile pipeline will have an ultimate capacity of
about 350,000 barrels per day, and in addition to its connection to the
ExxonMobil Baton Rouge Refinery, the pipeline will have potential access
to other local refineries representing approximately 140,000 barrels per
day.
Project construction is scheduled to begin in early 2013. The Port
Hudson upgrades and new crude oil pipeline are expected to be completed
by the end of 2013 and the Maryland Terminal completion is scheduled for
the second quarter of 2014.
Genesis intends to finance the transaction with funds available under
its revolving credit facility. Genesis has entered into definitive
agreements with ExxonMobil in which ExxonMobil will grant Genesis a land
lease at the Maryland Terminal site and secure preferential rights for
throughput at the facilities.
About Genesis Energy
Genesis Energy, L.P. is a diversified midstream energy master limited
partnership headquartered in Houston, Texas. Genesis′ operations include
pipeline transportation, refinery services and supply and logistics. The
Pipeline Transportation Division is engaged in the pipeline
transportation of crude oil and carbon dioxide. The Refinery Services
Division primarily processes sour gas streams to remove sulfur at
refining operations. The Supply and Logistics Division is engaged in the
transportation, storage and supply and marketing of energy products,
including crude oil, refined products and certain industrial gases.
Genesis′ operations are primarily located in Texas, Louisiana, Arkansas,
Mississippi, Alabama, Florida and the Gulf of Mexico. In Louisiana,
Genesis employs more than 300 people.
Genesis Energy, L.P.
Bob Deere, 713-860-2516
Chief Financial
Officer
