Genesis Energy, L.P. Announces Expansion of Existing Gulf Coast Terminal
Infrastructure, New Crude Oil Pipeline and New Unit Train Facility
HOUSTON -- February 4, 2013
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
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
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