USD Partners Announces Five Year Ethanol Customer Renewal at its West Colton Terminal; Commencement of Renewable Diesel Operations

(USD Partners/Business Wire) USD Partners LP (NYSE:USDP) (the “Partnership”) announced it has entered into a five-year Terminal Services Agreement with a minimum monthly throughput commitment with a major ethanol producer at its West Colton, CA terminal, effective January 1, 2022. This contract replaces an existing short-term contract at the terminal and is expected to add incremental Net Cash from Operating Activities and Adjusted EBITDA of approximately $1.0 million to $1.5 million per year, subject to changes in expected throughput.

Additionally, the Partnership has commenced renewable diesel operations at its West Colton Terminal and the previously announced five-year Terminal Services Agreement with USD Clean Fuels LLC (“USDCF”) became effective December 1, 2021. As previously stated, this agreement is supported by a minimum throughput commitment to USDCF from an investment-grade rated, refining customer as well as a performance guaranty from US Development Group, LLC, the Partnership’s sponsor.

“We are excited to announce this renewed long-term partnership at our West Colton Terminal. We believe the extended contract term, combined with the expansion and long-term commitment in renewable diesel handling, speaks to our strategically advantaged portfolio of assets,” said Brad Sanders, Executive Vice President and Chief Commercial Officer for USD. “We are committed to the transition into sustainable fuels and see our USD Clean Fuels business as a strong growth platform for USD and potentially, the Partnership. We look forward to future announcements of continued growth within clean fuels.”

USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC (“USD”) to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies and refiners. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail.

USD and its affiliates, which own the general partner of USD Partners LP, are engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USD is currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities. For additional information, please visit www.usdg.com. DRUbit™, DBR™ and DRUbit™ by Rail™ are trademarks of DRU Assets LLC, a subsidiary of USD, and are used by permission. All rights reserved. Information on websites referenced in this release is not part of this release. READ MORE