ENERGY IN MOTION RAIL STORAGE DOCKS PIPELINES TRUCK.

Transcription

1 ENERGY IN MOTION RAIL STORAGE DOCKS PIPELINES TRUCK

2 OVERVIEW ENERGY IN MOTION Jefferson Energy Terminal was founded in 2012 to meet the needs of the Gulf Coast Refining market. The vision was to connect the abundant North American crude production to the U.S. Gulf Coast and beyond. The terminal became operational in the Fall of The heat assist heavy crude system was added in January of Current projects expected to complete in 3Q 2017 will expand the terminal s service to ethanol and heavy refinery feedstocks. Future projects include rail loading of refined products for export to Mexico and domestic distribution. The terminal provides customers with the following capabilities: Multi-modal facility connecting rail, marine, truck, and pipeline. Loading and unloading capability including: ethanol, fuels, and crude oil from the heaviest Canadian bitumen to the lightest condensate. Directly served by three Class 1 Railroads (UP, BNSF, KCS), with power sharing agreements with CP and CN. Over 2,100,000 barrels of shell storage capacity in service or under construction with full buildout potential of 18 million barrels. REFINING PROXIMITY Located in the center of the 9.1 million barrel per day Gulf Coast refinery market, the terminal is accessible by rail, interstate highway, and marine modes. The Beaumont / Port Arthur area is home to multiple major refineries with a total operating capacity of 1.5 million barrels per day. The terminal sits on a 250-acre site on the east bank of the Neches River Ship Channel at the Port of Beaumont the fourth largest port by cargo volume in the United States. Aframax capable ship dock and an inland barge dock links Jefferson Energy Terminal to domestic and foreign marine destinations. The Neches River at the Port of Beaumont is maintained at a depth of 40 feet with expansion plans to a depth of 48 feet. Highway off-ramp under construction which will connect truck traffic from Interstate 10 directly to the terminal 3Q

3 CONNECTIVITY RAIL MARINE PIPELINE HIGHWAY FLEXIBILITY MAIN TERMINAL SITE DESIGN FEATURES THREE CLASS 1 RAILROADS - A COMPETITIVE POSITION The terminal is directly served by three U.S. Class I Rail Carriers (Union Pacific, BNSF, Kansas City Southern) as well as two Class l Canadian Carriers (CN and CP) by virtue of horsepower sharing agreements. This connects the terminal to bulk liquid origination and destination terminals in the United States, Canada and Mexico. These superior rail logistics allow for direct haul without the need for handoffs between carriers. This flexibility provides service availability as well as competitive transportation rates. SITE DESIGN FEATURES rail car unit train heat assist heavy crude unloading systems rail car free flow rail car unloading system rail car ethanol unloading system Receiving and staging tracks Over 3 million barrels of storage Heated & insulated tanks Crude oil and blending tanks Ethanol tanks Refined product tanks 2 - Deep water marine dock Aframax capable 1 - Inland Marine Dock Tank truck loading and unloading systems ROOM FOR EXPANSION Jefferson Energy Terminal currently operates on 250 acres and has room to grow. The terminal has an additional 190 acres north of the Main Terminal and 65 acres south of the Main Terminal for full build-out potential of 18 million barrels of storage and four Aframax capable docks. Existing Under Construction Planned 3 4

4 CAPABILITIES STORAGE TANKS Current and under construction tank capacity: 7 X 123 KBBL Crude Oil, Fuel Oil, Intermediates 2 X 280 KBBL Crude Oil, Fuel Oil, Intermediates 3 X 187 KBBL Ethanol 1 x 123 KBBL Ethanol Total tank shell capacity of these 13 tanks equals over 2.1 million barrels. The terminal has total potential capacity of 18 million barrels of storage. SHIP DOCK Marine dock for ships, ocean going and inland barges (40 feet of water depth) Equipped with state-of-the-art dock vapor recovery and thermal oxidizer for emissions control Capable of berthing Aframax ships Very efficient docks Up to 25,000 barrel per hour transfer rate. RAIL ACCESS Three Class I and two Canadian Class I Railroads with mainline access (no short line) Multiple receiving and staging track to handle additional unit trains before or after unloading MEASUREMENT SYSTEMS The terminal is equipped with custody transfer metering skids (LACT units) for rail and truck unloading. The LACT units are equipped with a prover to accurately measure volumes of liquid through the terminal. BARGE DOCK Inland barge dock capable of loading / unloading four 30,000 barrel barges simultaneously. Equipped with state-of-the-art dock vapor recovery and thermal oxidizer for emissions control. TRUCK UNLOADING / LOADING Dedicated service overpass directly from Interstate 10 into the terminal is under construction to be completed and in service 3Q 2017 Two crude unloading stations are able to accommodate up to four tank trucks per hour Crude unloading capacity of over 8,500 barrels per day with the ability to expand Ethanol truck loading capable of loading 20,000+ barrels of ethanol per day

5 CRUDE OIL SYSTEMS Jefferson Energy Terminal was built to be the most efficient rail terminal in the region for receiving unit trains of heavy Canadian conventional and unconventional (bitumen) crudes. The low API Canadian crude and bitumen barrels handled at the terminal are a perfect fit for refiners that need to increase feedstocks to underutilized Gulf Coast crackers and cokers. These heavy barrels also work very well in the fuel oil and broader black oil market. The heavy offloading system, designed to an asphalt specification, can turn unit trains in under 24 hours with options to direct load to barge or to tank for storage and blending. Most efficient rail terminal in the region for receiving unit trains of light and heavy conventional crudes; undiluted and low dilution bitumens. FREE FLOW UNLOADING SYSTEM Currently capable of unloading one unit train of 120 free flowing crude oil rail cars in under 24 hours. Light crude oils produced in the U.S. can be unloaded by rail and blended with Canadian bitumen to develop feedstocks that optimize refinery yields and maximize product margins for Gulf Coast refineries. Storage tanks are equipped with heating and paddle mixers. Robust blending capability of crude oils brings exceptional value to refiners. The docks run at efficiency levels that exceed many other terminals along the Gulf Coast. HEAT ASSIST HEAVY CRUDE UNLOADING SYSTEM Currently capable of heating and unloading one unit train of up to 128 rail cars of heavy crude oil in under 24 hours. Designed for pure bitumen, railbit, and heavy conventional crude. BOILERS Two 2,500 horsepower boilers and one 300 horsepower boiler produce steam to heat, unload, and store a full range of heavy crude oils. BLENDING TO CUSTOMER SPECIFICATIONS Jefferson has staff highly experienced in crude blending properties to meet the needs of area refineries. Low API crudes and bitumen can be delivered to the Gulf Coast from Canada by rail and blended with medium and light crudes. 7 8

6 ETHANOL THE JOINT VENTURE In 2016, Jefferson Energy and Green Plains Inc. formed JGP Energy Partners, a joint venture focused on creating a world class intermodal export and import distribution hub for ethanol and other liquids. The project will provide customers unparalleled access to a deep water terminal with unmatched logistical optionality, service, reliability and lower overall cost. The two partners, combining the second largest producer of ethanol globally with the owner of a logistically advantaged and efficient rail/ marine terminal, are committed to developing better solutions for customers where rail meets water. The JGP terminal location provides a sustainable competitive advantage for a host of potential clients looking for a better answer and improved flexibility. PHASE I STORAGE JGP will construct 550,000 barrels of storage in four tanks. Three tanks (each at 150,000 bbls working capacity) will be used for various export grades on a commingled basis. One 100,000 barrel tank will be used for domestic (ASTM) ethanol. DISTRIBUTION The ethanol tanks will provide flexibility to meet the demand for multiple export grades as well as domestic (ASTM) spec. Domestic ethanol will be distributed through a two-bay truck loading rack. THE TERMINAL The JV ethanol infrastructure will be located within the existing terminal owned and operated by Jefferson Energy Companies, located on 250 acres in Beaumont, Texas. It is positioned in one of the largest refinery markets in the U.S., located in the RAIL ADVANTAGE At the JGP Energy Terminal, there are no short-line railroad connections required to access any Class I railroad (UP, BNSF, KCS). The rail carriers have direct mainline access and will bring unit trains directly into the terminal without delay. The facility will be able to discharge up to 120 car unit trains of ethanol in under 24 hours, with the capacity to hold two full unit trains at any one time. In addition to ideal rail capability, the site has efficient marine docks to support a high flow ethanol export, import and domestic distribution operation. Each export tank will hold two full unit trains of 110 railcars, and will have drain-dry capability to facilitate changes in specifications as needed. PHASE II EXPANSION The joint venture has the option to build up to two additional storage tanks of 150,000 barrels for Phase II expansion, as well as another ship dock and additional truck loading bays. LOADING & UNLOADING The rail unloading system will have an offloading The dock will accommodate a wide range of domestic and export marine vessels, including: - Brown water barges - Blue water barges - Chemical Tankers - Panamax ships - MR ships - Aframax ships Dedicated lines will be maintained to ensure petroleum-free undenatured ethanol. PERMITS center of the 9.2 million barrel per day Gulf Coast region (PADD III). The terminal is directly served via mainline access by three Class I railroads: Union Pacific, Burlington Northern Santa Fe, and Kansas City Southern. These three Class I railroads have power sharing arrangements with Canadian Pacific and Canadian National railroads. Direct rail access is available to most ethanol production plants in North America. Customer interest in the project has been very strong. We are in the process of contracting capacity in order to supply the market mid rack as well as a series of ladder tracks to receive unit trains. Ethanol loading rates will be 10,000 barrels per hour to ship and 5,000 barrels per hour to barge. The terminal will have a Denatured Spirits Permit (DSP) from the Alcohol & Tobacco Tax and Trade Bureau (TTB). It will also have Free Trade Zone (FTZ) status Ethanol unloading rates will be 7,500 barrels per and ISCC certification. COMMERCIAL CONTACTS Frank Rodriguez, VP - Commercial Development Phone: (713) frodriguez@jeffersonenergyco.com hour from unit train. Expected turn time is hours from placement of unit train to release. Paul Melton, VP - Blendstar, LLC Phone: (402) pmelton@blendstarllc.com 9 10

7 FUEL EXPORTS PIPELINE The Jefferson Energy Terminal is developing a rail loading system for refined product export to Mexico. With the liberalization of the Mexican energy sector we see high levels of interest from refiners with operations in the US to supply ULSD and gasoline directly into Mexico. Many parts of Mexico are undersupplied due to inadequate terminal and pipeline capacity. Shipping refined products by rail into these markets allows for a quick and efficient solution to meet consumer demand. FUEL BY RAIL TO MEXICO El Paso Gasoline & Diesel Market Demand Per State Gasoline (Kbd) Diesel (Kbd) Total (Kbd) Monterrey (Nuevo León) San Luis Potosi Querétaro Mexico City Torreón (Coahuila) Durango The Jefferson Energy Terminal plans to construct two (2) pipelines to and from the Phillip 66 s (P-66) Beaumont (Nederland) Terminal. This connectivity allows Jefferson to distribute up to 350 centistoke material to and from regional breakout storage terminals and refineries in Southeast Texas and Louisiana. Hermosillo Chihuahua Eagle Pass San Antonio Houston PIPELINE CONNECTIVITY TO PHILLIPS 66 TERMINAL Outbound to Phillips 66: - Size: 24 Diameter Inbound from Phillips 66 - Size: 12 Diameter Torreón Durango Zacatecas Aguascalientes Guadalajara Satillo San Luis Potosi Laredo Monterrey Querataro Brownsville Origin Jefferson Energy Beaumont Terminal Terminus Phillips 66 Beaumont Terminal 12-mile pipeline Capacity 200,000 bpd outbound Product Blended heavy and light crude oil, condensates, and feedstocks Segregation Minimum Batch Size = 40,000 bbls Operator P-66 Service Commencing in Q PIPELINE CONNECTIVITY TO LOUISIANA REFINERIES Bayou Bridge Pipeline Capabilities: Origin Phillips 66 Beaumont Terminal Terminus Jefferson Energy Beaumont Terminal 12-mile pipeline Capacity 80,000 bpd inbound Product Light crude oil, condensates, and feedstocks Segregation Minimum Batch Size = 25,000 bbls Operator P-66 Service Commencing in Q Origin Delivery to Lake Charles and St. James, Louisiana Mexico City Service Light and heavy: Lake Charles in-service Q1 2016; St. James in-service 2nd half of

8 COMMITMENT TO THE ENVIRONMENT Jefferson Energy is dedicated to protecting the environment, the community, our employees and contractors, and aims to meet or exceed regulatory requirements The facility is equipped with state-of-the-art railcar and dock emissions control. EXPERIENCE INTEGRITY Jefferson Energy s team has broad expertise in refining, terminal operations, and rail, marine, and truck loading and unloading. Seasoned industry professionals lead our company and facilities in the areas of Operations, EHS, Engineering, Construction, and Maintenance. PUBLIC-PRIVATE PARTNERSHIP The terminal is a public-private partnership between the Port of Beaumont and Jefferson Energy Companies. According to the American Association of Port Authorities, the Port of Beaumont is the fourth largest port in volume in the United States. The terminal is owned and operated by Jefferson Energy Companies, a midstream oil company that serves the Gulf Coast. Jefferson Energy Companies is majority-owned by Fortress Transportation and Infrastructure Investors Ltd (NYSE: FTAI), which is managed by Fortress Investment Group (NYSE: FIG). SAFETY/EMERGENCY RESPONSE Safety is a core value of Jefferson Energy Companies. Our goal is zero incidents and accidents. The facility is equipped with emergency response equipment necessary to mitigate, contain, and control emergencies by trained personnel

9 NORTH TERMINAL POTENTIAL OF 10,000,000 BBLS OF STORAGE (190 ACRES) POTENTIAL OF 5,500,000 BBLS. OF STORAGE (65 ACRES) SOUTH POTENTIAL BUILD OUT CUSTOMER CONTACTS FRANK RODRIGUEZ Vice President, Commercial Development U.S. Jefferson Energy Companies Mobile: (713) CORPORATE CONTACT MARK VIATOR Director, Public & Government Affairs Mobile: (409) CARRIE CHASE Vice President, Commercial Development Canada Jefferson Energy Canada th Avenue SW Calgary, AB T2P 3N9 Mobile: (403) ARTURO GARCIA DE LA RIVA Vice President, Commercial Development Mexico Jefferson Energy Mexico Mobile: (281) LAWRENCE WALDRON Chief Commercial Officer Jefferson Energy Office: (281) (ext. 210) JEFFERSON ENERGY COMPANIES CORPORATE OFFICE 9595 Six Pines Drive, STE 6370 The Woodlands, Texas (281) JEFFERSON ENERGY BEAUMONT OFFICE Edison Plaza Building 350 Pine Street Suite 1725 Beaumont, Texas JEFFERSON ENERGY TERMINAL SITE 94 Old Highway 90 Vidor, Texas (409)