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US Development Group, through Port Arthur Terminal, a wholly owned subsidiary, announced Wednesday the development of a multi-modal oil handling terminal in Port Arthur.

The terminal is designed to handle DRUbit™, a proprietary blend of Canadian heavy crude oil formulated to be non-hazardous and non-flammable for transportation by rail.

Scheduled for completion in the second quarter of 2021, the Port Arthur Terminal represents a capital investment of more than $130 million that is expected to bring more than 1,200 direct and indirect construction jobs to the City of Port Arthur and Jefferson County, as well as more than 40 full-time jobs once the facility begins commercial operations.

US Development Group CEO and President Dan Borgen said the constructions is a first-of-its-kind destination terminal.

“By giving producers in the Canadian oil sands a safe and efficient means of transporting product to U.S. Gulf Coast refineries and manufacturers, we anticipate the new terminal will represent a long-term investment for USDG with continued growth,” he said. “We look forward to playing a role in the economic prosperity of Port Arthur and Jefferson County in the coming years. Moreover, USDG’s patented DRUbit™ process produces a non-hazardous transportation product that has great economic benefits for Port Arthur area refineries.”

Borgen said County Judge Jeff Branick, the Jefferson County Commissioners, Port Arthur Mayor Thurman Bartie, the Port Arthur City Council and City Manager Ron Burton were instrumental in making the Port Arthur terminal project come to fruition.

“ We also wish to thank Larry Kelley, Director and CEO of the Port of Port Arthur, and Floyd Batiste, CEO and Executive Director of the Port Arthur Economic Development Corporation for their support in helping move the project forward,” he said. “As a company with employees and contractors that call Port Arthur and Jefferson County home, USDG is committed to being a valued corporate member of the community.”

Strategically located close to key infrastructure and waterways, the Port Arthur terminal expands USDG’s network of crude oil destination terminals and will facilitate access of Western Canadian heavy crude to the Gulf Coast and other markets.

The new DRUbit™ facility will allow Canadian heavy crude extracted from northwestern Canadian tar sands to replace competing feed stock from other imported sources, which are either becoming prohibitively expensive, or politically arduous.

Project features include rail unloading, marine barge loading and unloading, tank storage and blending, and pipeline connectivity to the nearby Phillips 66 Beaumont Terminal, giving customers access to a large network of refining and marine facilities. In addition to handling DRUbit™, the facility provides future growth opportunities for other bulk-liquid commodities including refined products, feedstocks, intermediates, chemicals, and biofuels, as well as dry-bulk aggregates, laydown storage, and railcar storage-in-transit (SIT).

“We appreciate the dialogue and collaboration with the team at US Development Group throughout the planning and approval process,” Branick said. “We were able to come together for a common purpose that will benefit Jefferson County citizens and the local oil industry alike. The completed facility will have an ongoing positive economic impact on this community.”