Source: Genesis Energy
Genesis Energy, L.P. (NYSE:GEL) has entered into several agreements and commenced work to expand its crude oil pipeline and terminaling capabilities in the upper Texas coast and to expand its refinery services operating footprint with a new sour gas processing facility.
Genesis has acquired three above-ground storage tanks, located in Texas City, Texas, representing aggregate capacity of approximately 230,000 barrels that Genesis will refurbish and convert into crude oil capable tanks. It has also acquired an existing barge dock at the same location, all approximately 1.5 miles from its existing Texas pipeline system. Genesis also intends to construct a truck station, tankage and possible pipeline interconnects at West Columbia, Texas, to be able to provide incremental transportation service for Eagle Ford and other Texas production through its system to refining markets in the greater Houston/Texas City area as well as markets accessible via barge from the new Texas City terminal. Once the refurbishment, tie-in and all interconnecting pipe is completed, estimated to be in the fourth quarter of 2011, Genesis will be able to handle approximately 40,000 barrels per day of crude oil through the Texas City terminal.
In connection with its activities in Texas, Genesis is also constructing interconnecting pipeline and other required facilities to provide transportation services for all of the crude oil production from the Hastings field, near Alvin, Texas, that is in the very early stages of a CO2 tertiary recovery program.
“Genesis is very excited about the expansion of our Texas crude oil infrastructure. With our existing access to local refineries and the added ability to access, via barge transportation, other refining markets, we believe Genesis can provide quality, value enhancing services for Eagle Ford and conventional oil produced in, and transported to, the upper Texas coast,” said Grant Sims, Genesis Chief Executive Officer.
Genesis is also pleased to announce it has entered into agreements and commenced work on a new sour gas processing facility to be installed at Holly Refining and Marketing’s refining complex located in Tulsa, Oklahoma. The new facility, expected to be completed no later than the fourth quarter of 2012, will remove a portion of the sulfur from the crude oil refined at such complex and result in the potential addition of 24,000 dry standard tons (“dst”) per year of sodium hydrosulfide (NaHS), the by-product Genesis receives for its sulfur removal services.