OMAHA, Neb. and BRENTWOOD, Tenn., Nov. 04, 2015 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) and Delek US Holdings, Inc. (NYSE:DK) today announced plans to form a 50:50 joint venture to build an ethanol unit train terminal in Maumelle, Arkansas on the Union Pacific rail line. The project is expected to cost approximately $12 million and be completed during the fourth quarter of 2016.
“We are pleased to move forward with the partnership’s first organic growth project with a strategic downstream partner,” said Todd Becker, president and chief executive officer at Green Plains Partners. “When completed, this new terminal will allow ethanol to be delivered more efficiently into the Little Rock and surrounding markets. This certainly will give the joint venture a platform upon which to build.”
The terminal will be capable of unloading 110-car unit trains in less than 24 hours and initially include storage for approximately 4.2 million gallons of ethanol. Green Plains Partners and Delek US will jointly operate the terminal.
Mayor Mike Watson of Maumelle added, “The investment by Green Plains Partners and Delek US is a positive economic development opportunity for both the city of Maumelle and surrounding Little Rock area.”
About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. (NASDAQ:GPRE) to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics and convenience store retailing. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 155,000 barrels per day. Delek US Holdings, Inc. and its affiliates also own approximately 62 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. The retail segment markets motor fuel and convenience merchandise through a network of approximately 355 company-operated convenience store locations operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™ brand names. Delek US Holdings, Inc. also owns approximately 48 percent of the outstanding common stock of Alon USA Energy, Inc.
Forward-Looking Statements
This press release may include forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995, as amended. Statements that do not relate strictly to historical or current facts are forward-looking, including, but not limited to, statements as to the expected timing, completion and effects of the proposed transaction between Green Plains Partners and Delek US, and statements about the benefit of the proposed transaction, including future financial and operating results and each company’s plans, objectives, expectations and intentions. Such statements contain words such as “anticipates,” “believes,” “estimates,” “intends,” “plans,” “possible,” “if,” “will,” “expects” and other words of similar meaning that are predictions of or indicate future events, trends or prospects.
These forward-looking statements involve risks and uncertainties that may cause the actual results, performance or achievements of Green Plains Partners or Delek US to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements, many of which involve factors or circumstances that are beyond Green Plains Partners’ or Delek US’s control. The risks and uncertainties include, but are not limited to changes in the business plans of Green Plains Partners or Delek US as circumstances warrant, uncertainties regarding the timing of the proposed transaction between Green Plains Partners and Delek US, the parties ability to satisfy closing conditions (including receipt of regulatory approvals) and consummate the transaction, failure of either company to realize the anticipated benefits from the proposed transaction, Green Plains Partners’ ability to integrate the facility into its operations with no substantial adverse effect on its existing operations or financial performance, as well as industry and economic conditions, competitive, legal and governmental factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in Green Plains Partners’ and Delek US’s filings with the SEC. Green Plains Partners and Delek US undertake no obligation nor intend to update these forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.