Genesis Energy says it is expanding the company’s Port of Natchez terminal to handle bitumen, a product mined from Canadian oil sands. The expansion will create 20 new jobs in Adams County, the company said.
Steve Nathanson, COO of Genesis Energy, said the expansion will help facilitate the safe and efficient transportation of North American crude oil. Genesis has significant midstream assets throughout Mississippi, he noted.
Genesis Energy is partnering with Southern Pacific Resource Corp. to handle and transport dilbit, a combination of diluent and bitumen, to refineries on the Gulf Coast.
Southern Pacific mines the bitumen in the Canadian oil sands and blends the bitumen with diluent, creating dilbit. The dilbit will then be shipped nearly 3,000 miles by rail to the Port of Natchez, where it will be off-loaded to Genesis Energy’s terminal.
In Adams County, the dilbit will be transferred to barges that will deliver the product as feedstock to refineries on the Gulf Coast. In addition, Southern Pacific has the opportunity to use its empty rail cars to transport lower priced diluent from the Gulf Coast on their return to Canada.
The Mississippi Development Authority (MDA) worked with local officials to support Genesis Energy with this expansion. The agency provided assistance to Adams County for public infrastructure improvements at the Port of Natchez, and Adams County is establishing a rail car unloading system at the port to help facilitate the expansion.
Genesis Energy’s Natchez terminal is expected to begin receiving product shipments by the end of this year. As Southern Pacific’s production increases, Genesis Energy’s operations at its Natchez terminal could result in approximately 20,000 additional rail car shipments entering and leaving the Port of Natchez each year.
Genesis Energy L.P. is a midstream energy limited partnership headquartered in Houston. Its operations include pipelines, storage tanks, marine operations, refinery-related plants and trucks and truck terminals.