US Development Group (USDG) is developing a multi-modal oil handling terminal in Port Arthur TX through its Port Arthur Terminal subsidiary.
The company says the terminal is specially designed to handle DRUbit, a proprietary blend of Canadian heavy crude oil formulated to be non-hazardous and non-flammable for transportation by rail.
The $130 million project is expected to be completed in the second quarter of 2021, bringing more than 1,200 direct and indirect construction jobs to Port Arthur and Jefferson County, as well as more than 40 full-time jobs once operations commence at the facility.
“USDG is pleased to be part of the Port Arthur community and construct the first-of-its-kind destination terminal,” said Dan Borgen, USDG CEO and president. “By giving producers in the Canadian oil sands a safe and efficient means of transporting product to U.S. Gulf Coast refineries and manufacturers, we anticipate the new terminal will represent a long-term investment for USDG with continued growth. We look forward to playing a role in the economic prosperity of Port Arthur and Jefferson County in the coming years.
“Moreover, USDG’s patented DRUbit process produces a nonhazardous transportation product that has great economic benefits for Port Arthur-area refineries.”
Borgen thanks city and county leaders for helping move the terminal forward, including Jefferson County judge Jeff Branick and Port Arthur mayor Bill Bartie.
“We appreciate their leadership and ongoing collaboration throughout the site selection and proposal process, as well as the supportive business environment they have created that helped us decide to locate the project here,” Borgen said. “We also wish to thank Larry Kelley, director and CEO of the Port of Port Arthur, and Floyd Batiste, CEO and executive director of the Port Arthur Economic Development Corporation for their support in helping move the project forward.
“As a company with employees and contractors that call Port Arthur and Jefferson County home, USDG is committed to being a valued corporate member of the community.”
Strategically located close to key infrastructure and waterways, the Port Arthur terminal expands USDG’s network of crude oil destination terminals and will facilitate access of Western Canadian heavy crude to the Gulf Coast and other markets, the company said. The new DRUbit facility will allow Canadian heavy crude extracted from northwestern Canadian tar sands to replace competing feed stock from other imported sources, which are either becoming prohibitively expensive, or politically arduous.
Project features include rail unloading, marine barge loading and unloading, tank storage and blending, and pipeline connectivity to the nearby Phillips 66 Beaumont Terminal, giving customers access to a large network of refining and marine facilities. In addition to handling DRUbit, the facility provides future growth opportunities for other bulk-liquid commodities, including refined products, feedstocks, intermediates, chemicals and biofuels, as well as dry-bulk aggregates, laydown storage, and railcar storage-in-transit (SIT).
“We appreciate the dialogue and collaboration with the team at US Development Group throughout the planning and approval process,” Branick said. “We were able to come together for a common purpose that will benefit Jefferson County citizens and the local oil industry alike. The completed facility will have an ongoing positive economic impact on this community.”
Added Ron Burton, Port Arthur city manager: “US Development Group’s terminal project will greatly benefit Port Arthur’s thriving downstream energy community with the construction of their patent DRUbit technology rail logistics facility, which will safely process and deliver heavy feedstock to local and regional industrial refineries.
“The company’s investment and their commitment to creating jobs for our residents will have a tremendous economic impact for the community. We look forward to establishing this new partnership with a company committed to making Port Arthur attractive for other investments and community development projects to be initiated here in the future.”