Genesis plans $75 million crude oil rail facility in Raceland

Houston-based Genesis Energy L.P. said Monday it plans to build a crude oil train unloading facility in Raceland that will connect to pipelines serving Baton Rouge- and St. James-area refineries.

The Raceland Rail Facility will include more than 400,000 barrels of crude storage tanks and pipeline infrastructure, according to Genesis. The cost of the facility is estimated at less than $75 million.

Genesis has completed the engineering work, filed all necessary permits, and executed the necessary railroad agreements for the facility. The facility will be able to unload two unit trains per day. Unit trains are trains whose entire cargo consists of one type of commodity.

Genesis is also in talks to build pipelines that will allow the oil to be moved south to Clovelly, where Louisiana Offshore Oil Port’s storage facility and existing pipelines connect to the vast majority of refineries in Southeastern Louisiana. The Raceland facility is expected to begin operating in the second quarter of 2014.