JP Energy Partners LP began expanding rail facilities at its North Little Rock refined products terminal to allow for unit train deliveries of ethanol, the company said Feb. 16.
The North Little Rock, Ark.-based terminal’s ethanol offloading efficiency and capacity will be improved, and up to 108 car unit trains could be offloaded.
The expansion project will utilize existing infrastructure at the site, including up to 4.5 million gallons of ethanol storage.
Up to 9.5 million gallons of ethanol will be blended and distributed per month, JP Energy said. Conventional blends E15, E85, or E100 can be selected and product access will be 24 hours per day.
A separate interconnection agreement with an affiliate of Magellan Midstream Partners LP was executed to connect the terminal to Magellan’s Little Rock Pipeline. JP Energy’s customers could deliver ethanol to the terminal via Enterprise Product Partners’ TEPPCO Pipeline or the Little Rock Pipeline, providing access to Gulf Coast and Midcontinent refineries.
The capital cost of both projects is estimated at about $5 million; this was included in JP Energy’s full-year 2016 growth capex estimate of $25 million to $35 million. Both projects are expected to be in service during the second quarter of 2016.
J. Patrick Barley, executive chairman and CEO, said the company could provide the lowest-cost ethanol in central Arkansas and elsewhere.
JP Energy Partners LP is based in Irving, Texas.
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