SOURCE: GT Logistics

GT Logistics

February 21, 2012 09:03 ET

GT Logistics Announces Marketing Agreement With Cokinos Energy

Agreement Provides Solution to Increase Delivery of Crude to the Gulf Coast

PORT ARTHUR, TX--(Marketwire - Feb 21, 2012) - GT Logistics, LLC (GTL) announced today that it has signed a marketing agreement with Cokinos Energy Corporation (Cokinos) that will enhance the services offered at its GT OmniPort located in Port Arthur, Texas. The 1,100 acre GT OmniPort, scheduled for initial operations in April of 2012, is a multi-modal terminal for crude oil and other products transported via rail, ship, barge and truck.

Upon GTL's completion of rail lines, crude railcar unloading racks, pipelines and barge loading facilities, Cokinos will be responsible for marketing and scheduling throughput of crude oil delivered to the GT OmniPort. In addition, Cokinos and GTL have finalized a throughput and terminal services agreement under which Cokinos will ship crude at guaranteed minimum volume levels through the GT OmniPort.

The GT OmniPort is designed for initial throughput capacity of 125,000 barrels of oil per day from railcar to barge. Crude delivered by rail is expected to be delivered to refineries located adjacent to the GT OmniPort which have demand for over one million barrels per day of crude feedstock. Future plans for the GT OmniPort include tank storage, pipeline and deepwater dock improvements, which will significantly increase GTL's participation in the global petrochemical market.

"The demand for terminal facilities in the Gulf Coast capable of receiving unit trains of crude continues to grow and we are pleased that GT OmniPort is able to fulfill this need," said Tim DeSpain, president, GT OmniPort. "Our agreement with Cokinos provides a solution to customers looking for ways to bring crude to the various markets in the Gulf Coast. This strategic partnership with a company with a proven track record of transporting crude from the wellhead to the end user will allow GTL to significantly increase the rate of expansion of its terminal facilities."

"We are excited to work with GTL and have dedicated capacity at the state-of-the-art GT OmniPort terminal, which, upon completion, will be one of the best and most efficient rail and water delivery destinations in the United States. We believe that the GT OmniPort will play a strategic role in meeting the oil demand of the U.S. refining industry along the Gulf Coast, especially as the role of rail delivered production from shale oil and Canadian crude continues to increase in the North American producing regions over the next five to ten years. We look forward to working with GTL and the development of the GT OmniPort for many years," said Michael Cokinos, president of Cokinos.

GTL's current construction program includes the installation of over ten miles of rail track with a loop track to handle two 103-car unit trains at its 1,100 acre site. Railcar unloading will be performed at an 18-spot rack system connected by pipeline to its 2-barge dock on Taylor's Bayou. Rail service to the site is provided by the Union Pacific Rail Road. GTL also owns and operates a 20-acre deepwater dock and receiving facility on the Sabine Neches Navigation District Channel with over 900 feet of steel bulkhead improvements and 1,700 feet of waterfront access to the 42-foot-deep channel. The deepwater dock is 2.2 miles from the rail terminal and is connected by a key Union Pacific rail line and highway. Pipeline connectivity between the sites and to the existing pipeline system in the region is being designed.

GTL's rail terminal and deepwater dock facilities offer rail access from Class I railroads, barge access to the inland waterway system, the ability to handle Panamax and post-Panamax vessels, and immediate access to the largest refineries in the Americas. These transportation options will allow GTL's customers to improve efficiencies and achieve incremental value for domestic crude production and exports of refined products. "The features and auxiliary facilities of the GT OmniPort terminal, including rail, barge, ship and pipeline improvements, will set new standards for customers, improve their logistics chain and reduce costs," said DeSpain. "The completion of construction and this agreement with Cokinos positions GT OmniPort as one of the top receiving facilities of crude by rail supply chain."

About GT Logistics
GT Logistics LLC is the designer, developer and operator of the GT OmniPort in Port Arthur, Texas, a multi-modal industrial park and liquids terminal offering rail, barge, truck, pipeline and deepwater ship transloading services to tenants and owners of facilities at its 1,100 acre rail and barge terminal and its 20 acre deepwater dock. For more information, please visit www.gtomniport.com.

About Cokinos Energy Corporation
Cokinos Energy Corporation is a privately held, full service oil and gas marketing and trading company established in 1982 and based in Houston, Texas. For more information, please visit www.cokinosenergy.com.

Contact Information