Texas Deepwater Partners and Shell to Refurbish Deer Park Rail Terminal for Loading of Refined Products

April 8, 2019

April 8, 2019 - 4:17 PM EDT

Texas Deepwater Partners and Shell to Refurbish Deer Park Rail Terminal for Loading of Refined Products

HOUSTON

Texas Deepwater Deer Park Terminal LLC (“TDWP DP”), a wholly owned
subsidiary of Texas Deepwater Partners (“TDWP”) and an affiliate of USD
Group LLC (“USDG”), has entered into a lease agreement with Equilon
Enterprises LLC d/b/a Shell Oil Products US (“SOPUS”) to retrofit and
refurbish the Deer Park Rail Terminal (“DPRT”) in order to load refined
products on the Houston Ship Channel. SOPUS affiliate Shell Trading (US)
Company (STUSCO) also entered into a related diesel supply agreement
with an affiliate of USDG.

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Upon completion of the project, the DPRT will have the capability of
loading up to 48 railcars per day, or approximately 33,000 barrels of
refined products per day. The facility is equipped with two operational
tanks with 50,000 barrels of total storage capacity, which will service
the railcar loading rack at the terminal with direct pipeline
connectivity to Deer Park Refinery and the Colex Products Terminal. The
renovated terminal is expected to begin operations during the second
quarter of 2019, as one of the most advantaged and efficient rail
loading terminals on the Houston Ship Channel. Following completion,
TDWP DP will continue to lease and operate the DPRT facility under a
long-term agreement with SOPUS. While the initial focus will be on
loading diesel into railcars, there may be a potential to further expand
the DPRT by adding incremental storage capacity and rail loading
capabilities to handle additional refined products.

“This is an exciting opportunity to work jointly with TDWP to
operationalize a long-idled asset as we continue to see diesel demand
growth in many markets,” said Odeh Khoury, Vice President, Shell
Products Trading & Supply Americas. “This project further increases our
integration with Shell’s Joint Venture in the Deer Park Refinery and
enables us to further optimize our integrated value.”

Larry Ruple, TDWP’s Executive Vice President of Business Development,
added, “We are excited for the opportunity to work with Shell on this
project, and for the value it creates by adding the much-needed takeaway
capacity for refined products in the strategic Houston Ship Channel
market.”

About USD Group LLC and Texas Deepwater Partners: USDG and its
affiliates are engaged in designing, developing, owning and managing
large-scale multi-modal logistics centers and energy-related
infrastructure across North America. USDG solutions create flexible
market access for customers in significant growth areas and key demand
centers, including Western Canada, the U.S. Gulf Coast and Mexico.
TexasDeepwater Partners is a 50/50 joint venture between USDG and Pinto
Realty Partners, whereby the joint venture is currently pursuing the
development of a premier energy logistics terminal on the Houston Ship
Channel with substantial tank storage capacity, multiple docks
(including barge and deepwater), inbound and outbound pipeline
connectivity, as well as a rail terminal with unit train capabilities.
For additional information, please visit texasdeepwater.com.

Shell Trading and Supply: SOPUS and STUSCO operate in the U.S. as
part of Shell Trading and Supply, one of the largest energy trading
operations in the world with its largest trading hubs located in London,
Houston, Singapore, Dubai and Rotterdam, trading in crude oil, natural
gas, LNG, electrical power, refined products, chemical feedstocks and
environmental products. This global organization combines our network of
trading companies, industry leading shipping and maritime capabilities
and integrated network of supply and distribution activities, to act as
the central nervous system for Royal Dutch Shell adding value across
Shell’s Upstream, Downstream and Integrated Gas businesses.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements with
respect to the operations and capacity of the DPRT, the future
expansions of the DPRT, the value and success of the DPRT to SOPUS,
STUSCO and TDWP, and the status and success of other TDWP development
projects. Words and phrases such as “is expected,” “is planned,”
“believes,” “projects,” and similar expressions are used to identify
such forward-looking statements. However, the absence of these words
does not mean that a statement is not forward-looking. Forward-looking
statements are not guarantees of future performance and involve certain
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecast in such forward-looking statements. Factors
that could cause actual results or events to differ materially from
those described in the forward-looking statements include construction
and cost-related risks; risks associated with constructing and operating
a terminal in a non-United States jurisdiction; changes in general
economic conditions; the effects of competition, in particular, by
pipelines and other terminalling facilities; the supply of, and demand
for, rail terminalling services for crude oil, refined products and
biofuels; hazards and operating risks that may not be covered fully by
insurance; disruptions due to equipment interruption or failure at our
terminals or third-party facilities on which our business is dependent;
natural disasters, weather-related delays, casualty losses and other
matters beyond our control; and changes in laws or regulations to which
we are subject, including compliance with environmental and operational
safety regulations, that may increase costs. TDWP, USDG, SOPUS and
STUSCO are under no obligation (and expressly disclaim any such
obligation) to update or alter the forward-looking statements contained
in this press release, whether as a result of new information, future
events or otherwise.