Jefferson Energy Terminal Makes Immediate Impact in the PADD 3 Ethanol Market
by Jim Venhoff (Genscape) The Jefferson Energy Terminal has hit the ground running since completing four large storage tanks in late 2017, capable of handling a total 550,000 barrels (bbls) of ethanol. The tanker “Bow Kiso” (IMO: 9379894) received the first ethanol that came from the terminal on November 30, 2017. Since the inaugural shipment, at least six additional vessels have been identified through Genscape’s Ethanol Export Monitor as carrying ethanol from this terminal.
Situated on the east bank of the Neches River Ship Channel at the Port of Beaumont in Texas, Jefferson Energy Terminal is close to multiple large refineries in the Port Arthur area such as Saudi Aramco’s Port Arthur Refinery and Exxon Mobil’s Beaumont Refinery. The port is the fourth largest in the U.S., and hosts cargos that make their way from the Gulf of Mexico or the Intracoastal Waterway each day. The terminal became operational in 2013 and has since raised its crude storage capacity to over 700,000 bbls.
In June 2016, Jefferson Energy and Green Plains Inc. began a joint venture, JGP Energy Partners, which would bring ethanol to the terminal. Its phase 1 goal was to become a distribution hub for the import and export for multiple grades of ethanol. Currently, 550,000 bbls of ethanol storage is active with the option to expand this capacity to 850,000 bbls. Nearly 450,000 bbls of working capacity is intended to be used for export while the remaining 100,000 bbls of working capacity will be used as domestic ethanol. However, the terminal has the capability to use all 550,000 bbls of working capacity for exports.
The terminal is able to handle two ethanol unit trains and is connected directly to Class I railroads, providing unit trains direct access without connecting to a short-line. This avenue opens doors to most ethanol plants in North America, including Green Plains who operates 17 ethanol plants with a total capacity of approximately 1.5 billion gallons (gals).
The completion of Jefferson Energy Terminal’s ethanol storage tanks brings a significant amount of additional ethanol to the PADD 3 region. READ MORE