HOUSTON, Texas-- Genesis Energy, L.P. said it has completed engineering work, filed all necessary permits, and executed the necessary railroad agreements with aim to commence construction on a new crude oil unit train unloading facility capable of unloading up to two unit trains per day in Louisiana, said a company release.
Genesis’ operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide.
The Raceland Rail Facility will initially be connected to existing midstream infrastructure that will provide direct pipeline access to both St. James and Baton Rouge area refineries. In addition, Genesis is in discussions to build pipeline infrastructure for the rail barrels to move south, ultimately providing access to existing infrastructure at Clovelly, LA and connectivity, via existing pipelines, to the vast majority of refineries in Southeastern Louisiana. The strategic location of the facility will have joint access to the Burlington Northern Santa Fe Railway and Union Pacific Railroad facilitating direct hauls via both Class 1 railroads from multiple origination points. The facility is expected to be operational in 2Q 2014.
The total cost to Genesis of the Raceland Rail Facility project, which includes more than 400,000 barrels of new crude oil storage and pipeline infrastructure, is expected to be less than USD $75 million. Genesis intends to finance the project with funds available under its committed revolving credit facility, the release said.