Diamond Green Diesel

Diamond Green Diesel signs terminal lease with International-Matex

March 6, 2020
Deal includes use of IMTT’s St Rose LA terminal as a logistics hub, new pipeline construction connecting to DGD’s Norco facility

Diamond Green Diesel (DGD), a joint venture between Darling Ingredients and Valero Energy, recently entered into a long-term lease agreement with International-Matex Tank Terminals (IMTT) for the access and use of IMTT’s terminal in St Rose LA.

DGD will use the terminal as a logistics hub for its existing and expanding renewable diesel facility in Norco, the company said.

IMTT, pursuant to the agreement, will construct two five-mile-long pipelines connecting its St Rose terminal to DGD’s Norco facility. IMTT also will repurpose approximately 790,000 barrels of existing storage capacity from heavy and residual petroleum service to storage of renewable diesel feedstock and finished product as a part of the project

The pipeline build and the storage capacity transition are expected to be in service prior to the end of 2021, DGD said, coinciding with the anticipated startup of its current 400-million-gallon expansion project.

“We are extremely pleased to be working with IMTT,” said John Bullock, executive vice president and chief strategy officer for Darling. “What is so often overlooked when discussing the critical success components of renewable diesel economics is the supply chain, which is both complicated and costly to manage. Having a world-class terminal like IMTT St Rose accessible by pipeline, with the capability to receive feedstocks and ship product via multiple modes of transport, creates a significant competitive advantage for us. DGD has been a leader in the industry, and developing a sophisticated and flexible supply chain is a continuation of our leadership position.

“We would not be in this business without a thorough plan that provides for flexibility in raw material sourcing and finished product marketing. This agreement places us in a position to economically source renewable diesel feedstock, while allowing us to supply the best markets for our renewable diesel and naphtha.”

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