USD Partners LP (OTC: USDP) (the “Partnership”) announced that it has entered into a one-year extension agreement with an existing refiner customer at its Hardisty Terminal for a contract that was set to expire in January 2024. The current agreement with the customer contains a commitment for 15% of the Hardisty Terminal’s capacity. The one-year extension with the customer contracts 7% of the Hardisty Terminal’s capacity through the end of January 2025, with an option to utilize up to an incremental 4% of the terminal’s capacity on a monthly basis. The renewal contains take-or-pay terms with minimum monthly payments and a slightly higher average rate than the original terminalling services agreement.
“We are pleased to announce that we have executed an early extension with our long-term refiner customer at the Hardisty Terminal,” said Jim Albertson, USD’s Senior Vice President Energy Infrastructure and Chief Commercial Officer - Canada. “With inventory levels and pipeline egress apportionment levels in Western Canada trending higher, the demand for crude by rail solutions should potentially continue to increase, which could lead to higher demand for terminalling services at the Partnership’s Hardisty Terminal. We look forward to keeping the market updated regarding our commercial discussions and potential new contracts for terminalling services at the Partnership’s Hardisty Terminal,” added Jim.
