U.S. Development Group L.L.C. (USD) entered into an agreement to sell five of its crude-by-rail oil handling and distribution terminals to Plains All American Pipeline L.P. for $500 million.
The transaction involves the St. James Crude Terminal in St. James, La.; Eagle Ford Crude Terminal in Gardendale, Texas; Van Hook Crude Terminal in Mountrail County, N.D.; Bakersfield Crude Terminal under development in Bakersfield, Calif.; and Niobrara Crude Terminal in Carr, Colo. The terminals' daily throughput capacity totals about 225,000 barrels of crude oil and condensate.
Under the deal's terms, USD will continue to provide customer service and scheduling services on behalf of Plains All American Pipeline. A Houston-based developer of unit train logistics and terminal facilities, USD plans to continue expanding its network of terminals supporting the oil and gas, and petrochemical industries.
"Our technical and service expertise in scheduling, fleet management and railroad operations support complements Plains' extensive network of assets throughout the U.S.," said USD President and Chief Executive Officer Dan Borgen in a prepared statement. "We believe that this transaction will provide for the most efficient optimization of the assets involved."
Browse articles on U.S. Development Group on Progressive Railroading