USD Partners LP will acquire Casper Crude to Rail, LLC from Stonepeak Infrastructure Partners, Cogent Energy Solutions and the Granite Peak Group for total consideration of USD 225 M.
The Casper terminal’s principal assets include i) a unit train-capable crude oil loading rail terminal with 100,000 barrels per day of capacity and dual loop tracks, ii) six customer-dedicated storage tanks with 900,000 barrels of total capacity and iii) a six-mile, 24-inch diameter pipeline with a direct connection from Spectra Energy Partners LP’s Express crude oil pipeline, which runs from Hardisty, Alberta, to Casper, Wyoming, and provides access to multiple grades of Canadian crude oil. The terminal’s advantaged location supports best-in-class access to multiple refining centers across the U.S., enhanced by onsite storage and blending capabilities, which enables customers to ship preferred grades of crude oil from Casper. Additionally, the terminal’s footprint and modular design allows for the addition of a second loading station and an additional 1.1 MMbbl of storage capacity with minimal disruption to existing operations and relatively low incremental capital costs.
The Casper terminal commenced operations in September 2014 and is supported by take-or-pay contracts with primarily investment grade refiners.
