Jefferson, a subsidiary of FTAI Infrastructure, has reached an agreement with the USD Group to purchase the Port Arthur terminal in Texas and 50% of a diluent recovery unit in Hardisty, Alberta. This $255 million deal is designed as part of an integrated crude oil logistics chain to meet the needs of the U.S. Gulf Coast.
Details of the Port Arthur Terminal
The Port Arthur terminal is located on a 320-acre site along the Sabine-Neches waterway and processes approximately 50,000 barrels of crude oil daily. The terminal has the capability to receive crude oil via rail and also features pipeline and barge connections, including a 12-mile pipeline to the Beaumont Phillips 66 terminal, which services refineries in the Beaumont, Lake Charles, and broader Gulf Coast markets.
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Revenue Forecast and Deal Completion Status
Jefferson expects the acquired assets to generate approximately $50 million in annual EBITDA over the next 12 months. However, the completion of this deal is subject to regulatory approvals and is expected to occur in the fourth quarter of this year. This acquisition will help Jefferson strengthen its position in the U.S. crude oil market and enhance its logistics capacity.
This deal represents a strategic step towards expanding crude oil logistics capabilities on the U.S. Gulf Coast and is expected to have a significant impact on the crude oil supply chain.
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