USD Partners enters five-year terminal agreement for ethanol producer

In Texas, USD Partners LP 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 million to $1.5 million per year, subject to changes in expected throughput.

Additionally, the Partnership has 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.