June 16, 2016 [OPIS] - Green Plains Inc. and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors, said Tuesday that they have formed a joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal.
This new ethanol export terminal is located on the same site of Jefferson’s existing crude terminal, which has a crude storage capacity of 850,000 bbl. Crude is being delivered inbound to Jefferson terminal by rail and ships, and it could also export crude.
The new ethanol terminal will be focused on exports only.
The 50/50 joint venture is expected to invest approximately $55 million in its Phase I development, which will initially focus on storage and throughput capabilities for multiple grades of ethanol.
Further development of the joint venture’s capabilities is expected to add the ability to manage multiple liquid products for import and export, including liquid hydrocarbons, vegetable oils and other nonliquid commodities.
“This project will add the necessary infrastructure at Jefferson Beaumont to distribute ethanol to markets worldwide,” said Greg Binion, CEO of Jefferson.
“Green Plains Trade Group will be the anchor customer of the joint venture, and the terminal is expected to serve other ethanol exporters as well,” he added.
The joint venture’s terminal will have direct access to multiple transportation options including Aframax vessels, inland and coastwise barges, trucks, and unit trains with direct mainline service from the Union Pacific, BNSF and KCS railroads.
Phase I development will leverage existing infrastructure at the Jefferson terminal in Beaumont, and is expected to include approximately 500,000 bbl of storage with expansion potential of up to 1 million bbl.
Construction of Phase I is expected to take approximately nine months, with completion projected in the second quarter of 2017.
Green Plains may offer its interest in the joint venture to its master limited partnership, Green Plains Partners LP, once commercial development is completed.
The terminal is owned and operated by Jefferson Energy Cos., a midstream oil and terminal company that serves the Gulf Coast. The terminal is located on 243 acres in Beaumont, positioned in one of the largest refinery markets in the U.S. and in the center of the 9.2 million b/d Gulf Coast refining market (PADD 3).
The terminal is a public-private partnership between the Port of Beaumont Navigation District of Jefferson County, Texas and Jefferson Energy Cos.
The Port of Beaumont is the fourth busiest port in the United States, according to the U. S. Army Corp of Engineers tonnage statistics, and the busiest military port in the U.S. The terminal is currently served by three Class I railroad carriers, allowing delivery from most origination terminals and plants in North America.
Green Plains Inc. is a diversified commodity-processing business with operations related to ethanol, distillers grains and corn oil production; grain handling and storage; a cattle feedlot; and commodity marketing and distribution services. The company processes 12 million tons of corn annually, producing over 1.2 billion gallons of ethanol, approximately 3.5 million tons of livestock feed and 275 million pounds of industrial grade corn oil at full capacity. Green Plains owns a 62.5% limited partner interest and a 2.0% general partner interest in Green Plains Partners.
