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USD’s Five-Year Ethanol Customer Renewal

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USD Partners LP has announced it has entered into a five-year Terminal Services Agreement with a minimum monthly throughput commitment with a major ethanol producer at its West Colton, CA terminal, effective January 1, 2022.

This contract replaces an existing short-term contract at the terminal and is expected to add incremental Net Cash from Operating Activities and Adjusted EBITDA of approximately $1.0 million to $1.5 million per year, subject to changes in expected throughput.

Additionally, the partnership commenced renewable diesel operations at its West Colton Terminal and the previously announced five-year Terminal Services Agreement with USD Clean Fuels LLC became effective December 1, 2021.

As previously stated, this agreement is supported by a minimum throughput commitment to USDCF from an investment-grade rated, refining customer as well as a performance guaranty from US Development Group LLC, the partnership’s sponsor.

“We are excited to announce this renewed long-term partnership at our West Colton Terminal. We believe the extended contract term, combined with the expansion and long-term commitment in renewable diesel handling, speaks to our strategically advantaged portfolio of assets,” said Brad Sanders, executive vice president and chief commercial officer for USD.

“We are committed to the transition into sustainable fuels and see our USD Clean Fuels business as a strong growth platform for USD and potentially, the Partnership. We look forward to future announcements of continued growth within clean fuels,” he added.

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