Port Arthur Marketing Agreement Eying Use Of Rail

May 2013, Vol. 240, No. 5

Twin Eagle Resource Management LLC has entered into a marketing agreement with GT Logistics LLC to exclusively market crude oil rail trans-loading capacity at the GT OmniPort facility located in Port Arthur.

GT Logistics LLC, owner and operator of the GT OmniPort facility, has constructed and operates the unit train facility. The facility, which has 8 miles of track, 18 rail car unloading racks and a two station barge dock, maintains direct rail service with the Union Pacific and Burlington Northern Santa Fe rail lines. The facility has direct access to the Intercoastal Waterway and will have deepwater access after further capital investment.

GT OmniPort began operations in September 2012 and is operational with full unit train and barge capabilities. Capacity is 100,000 bpd.

Along with the exclusive marketing arrangement, Enserco Midstream LLC, a privately held subsidiary of Twin Eagle Resource Management LLC, plans to construct four crude oil storage tanks at the GT OmniPort facility that are expected to be operational in the third quarter. These tanks will provide GT OmniPort with the added flexibility of handling different grades of crude. In the near future, the parties intend to construct additional storage capacity and to establish pipeline connectivity with refiners and other markets in the area.

 GT OmniPort is located adjacent to the Port Arthur refinery community, which has demand for about 2 MMbpd of crude. GT OmniPort is uniquely positioned to supply these refineries with a wide variety of crude types, including U.S. domestic light sweet oil, conventional Canadian heavy crude and undiluted bitumen.