Genesis Energy Expanding in Port of Natchez
Natchez, Miss. (July 9, 2012) – Officials from Genesis Energy L.P. (NYSE: GEL) have announced plans to expand operations at the company’s existing Port of Natchez terminal in Natchez, Miss., to handle bitumen, a product mined from Canadian oil sands. The expansion will create 20 new jobs in the Adams County area.
“I am grateful Genesis Energy has looked to its Adams County, Mississippi, facility for these operations, and I thank company officials for creating additional job opportunities for area workers,” Governor Phil Bryant said. “Mississippi has the port facilities, transportation network and business climate needed to support energy industry growth and play an important role in meeting North America’s energy needs.”
Steve Nathanson, chief operating officer of Genesis Energy, said, “We are excited about the opportunity to utilize and improve our existing assets in Mississippi to help facilitate the safe and efficient transportation of North American crude oil. Genesis Energy has significant midstream assets throughout Mississippi operated by our professional and dedicated employees. We would like to thank the Mississippi Development Authority, the Port of Natchez and Adams County for the opportunity and look forward to continuing to grow our operations in the area and the state of Mississippi.”
Genesis Energy is partnering with Southern Pacific Resource Corp. (TSX: STP) to handle and transport dilbit, a combination of diluent and bitumen, to refineries on the Gulf Coast. Southern Pacific mines the bitumen in the Canadian oil sands and blends the bitumen with diluent, creating dilbit. The dilbit will then be shipped nearly 3,000 miles by rail to the Port of Natchez, where it will be off-loaded to Genesis Energy’s terminal. In Adams County, the dilbit will be transferred to barges that will deliver the product as feedstock to refineries on the Gulf Coast. In addition, Southern Pacific has the opportunity to utilize its empty rail cars to transport lower priced diluent from the Gulf Coast on their return to Canada.
The Mississippi Development Authority (MDA) worked closely with local officials to support Genesis Energy with this expansion. The agency provided assistance to Adams County for public infrastructure improvements at the Port of Natchez, and Adams County is establishing a rail car unloading system at the port to help facilitate the expansion.
“This expansion demonstrates Genesis Energy’s belief in Mississippi’s business climate and in our workforce,” said Brent Christensen, MDA executive director. “I commend the company for its continued investment in southwest Mississippi, and I am proud MDA was able to work with Natchez Inc. and the Adams County Board of Supervisors to assist with infrastructure improvements to support this project.”
Genesis Energy’s Natchez terminal is expected to begin receiving product shipments by the end of 2012. As Southern Pacific’s production increases, Genesis Energy’s operations at its Natchez terminal could result in approximately 20,000 additional rail car shipments entering and leaving the Port of Natchez each year.
Genesis Energy L.P. is a midstream energy limited partnership headquartered in Houston, Texas, with a diverse portfolio of customers, operations and assets, including pipelines, storage tanks, marine operations, refinery-related plants and trucks and truck terminals. For more information, please visit www.genesisenergy.com.