FourPoint Resources Partners with Energy Transfer to Enhance Price River Terminal's Export Capacity
In a significant move for the energy sector, FourPoint Resources, LLC has officially announced its partnership with Energy Transfer LP to transform the Price River Terminal in Wellington, Utah. This strategic agreement not only doubles the terminal's capacity to export crude oil but also enhances the logistics required for the ongoing transport of American Premium Uinta (APU) crude to various refineries across the Lower 48 states.
The expansion of the Price River Terminal is set to materialize with several key enhancements. The terminal will introduce a state-of-the-art continuous loop track aimed at streamlining rail logistics, along with a railcar loading system capable of efficiently handling an impressive 140,000 barrels of oil per day. To further augment its operations, nine new rail loading arms will be installed, in addition to four additional truck offload lanes that will significantly improve the efficiency of truck unloading activities. Furthermore, the infrastructure will include a new heated storage tank with an approximate capacity of 140,000 barrels and two new tracks for 6,000-foot storage units, greatly boosting the terminal’s overall storage capabilities.
The completion date for this ambitious project is projected for the fourth quarter of 2026, pending receipt of necessary approvals from third-party entities and government regulations. With this expansion, FourPoint expects to secure a capacity of up to 50,000 barrels of oil per day at the terminal. Tripp Kerr, Vice President of Marketing at FourPoint, emphasized the importance of this collaboration, stating, "Energy Transfer is an outstanding midstream company, and their commitment will play a crucial role in our growth strategy within the basin."
Additionally, this terminal enhancement is closely intertwined with the recent rebranding initiative of what was previously known as Uinta Wax or Yellow Wax. The crude will now be marketed under the name American Premium Uinta (APU), a designation that encapsulates the superior quality of this specific resource, which boasts one of the highest paraffinic contents among U.S.-produced crude oils. APU is recognized as a premium, light-grade paraffinic crude oil, characterized by low levels of impurities such as sulfur and metals. This quality makes it a more appealing option for refineries as it allows for cost-effective processing, while simultaneously producing high-grade base oils for lubricants.
FourPoint's CEO, George Solich, detailed the company's goal of establishing a strong and consistent production base in the Uinta Basin. He noted that while foreign crude imports experience volatility, APU stands as a robust, domestic alternative for American refineries. The terminal's expansion is pivotal in ensuring FourPoint can deliver APU consistently and efficiently at scale, which not only promotes energy independence but also fosters the production of American-made goods with American crude.
The Uinta Basin is positioning itself uniquely within the landscape of U.S. oil production, showcasing promising development potential amidst a backdrop where other significant basins face declining outputs. Eric Eichler, Chief Operating Officer at FourPoint, reaffirmed the basin's capacity for substantial production growth, citing its remarkable well performance, multiple overlapping horizontal targets, and competitive well costs that align with success seen in the Permian Basin.
This partnership and subsequent infrastructure expansion signal a pivotal step towards capitalizing on the rising demand for American Premium Uinta, offering both companies a fortified position for service delivery to refiners nationwide. As the energy environment continues to evolve, the increasing prominence of the Uinta Basin as a viable contributor to America's energy future becomes exceedingly important, cementing its place in the strategy for sustainable and efficient energy production.
The expansion of the Price River Terminal is set to materialize with several key enhancements. The terminal will introduce a state-of-the-art continuous loop track aimed at streamlining rail logistics, along with a railcar loading system capable of efficiently handling an impressive 140,000 barrels of oil per day. To further augment its operations, nine new rail loading arms will be installed, in addition to four additional truck offload lanes that will significantly improve the efficiency of truck unloading activities. Furthermore, the infrastructure will include a new heated storage tank with an approximate capacity of 140,000 barrels and two new tracks for 6,000-foot storage units, greatly boosting the terminal’s overall storage capabilities.
The completion date for this ambitious project is projected for the fourth quarter of 2026, pending receipt of necessary approvals from third-party entities and government regulations. With this expansion, FourPoint expects to secure a capacity of up to 50,000 barrels of oil per day at the terminal. Tripp Kerr, Vice President of Marketing at FourPoint, emphasized the importance of this collaboration, stating, "Energy Transfer is an outstanding midstream company, and their commitment will play a crucial role in our growth strategy within the basin."
Additionally, this terminal enhancement is closely intertwined with the recent rebranding initiative of what was previously known as Uinta Wax or Yellow Wax. The crude will now be marketed under the name American Premium Uinta (APU), a designation that encapsulates the superior quality of this specific resource, which boasts one of the highest paraffinic contents among U.S.-produced crude oils. APU is recognized as a premium, light-grade paraffinic crude oil, characterized by low levels of impurities such as sulfur and metals. This quality makes it a more appealing option for refineries as it allows for cost-effective processing, while simultaneously producing high-grade base oils for lubricants.
FourPoint's CEO, George Solich, detailed the company's goal of establishing a strong and consistent production base in the Uinta Basin. He noted that while foreign crude imports experience volatility, APU stands as a robust, domestic alternative for American refineries. The terminal's expansion is pivotal in ensuring FourPoint can deliver APU consistently and efficiently at scale, which not only promotes energy independence but also fosters the production of American-made goods with American crude.
The Uinta Basin is positioning itself uniquely within the landscape of U.S. oil production, showcasing promising development potential amidst a backdrop where other significant basins face declining outputs. Eric Eichler, Chief Operating Officer at FourPoint, reaffirmed the basin's capacity for substantial production growth, citing its remarkable well performance, multiple overlapping horizontal targets, and competitive well costs that align with success seen in the Permian Basin.
This partnership and subsequent infrastructure expansion signal a pivotal step towards capitalizing on the rising demand for American Premium Uinta, offering both companies a fortified position for service delivery to refiners nationwide. As the energy environment continues to evolve, the increasing prominence of the Uinta Basin as a viable contributor to America's energy future becomes exceedingly important, cementing its place in the strategy for sustainable and efficient energy production.
Topics Energy）
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