Genesis Energy To Invest $125 Million In Baton Rouge Area Infrastructure Project

BATON ROUGE, La. – Today, Gov. Bobby Jindal and Genesis Energy President and Chief Operating Officer Steve Nathanson announced a $125 million investment to improve the company’s existing assets and develop new infrastructure in the Baton Rouge area. The company will modernize and expand its terminal in Port Hudson, construct an 18-mile, 20-inch diameter crude oil pipeline connecting to ExxonMobil’s Baton Rouge Refinery and build a new crude oil unit train facility.

The project will create 50 new direct jobs in the area, with an average salary of $80,000 a year, plus benefits. The expansion also will result in an estimated 220 new indirect jobs, along with 45 construction jobs.

Gov. Jindal said, “This announcement is great news for the Baton Rouge area and our entire state. Louisiana is an energy-rich state, and we’re proud that Genesis is joining the growing list of energy companies that continue to expand in our state because of our world-class energy infrastructure, strong business climate and incomparable workforce. Genesis has been creating growth and opportunity in the Baton Rouge area for years, and we’re proud the company chose to reinvest here so they can continue providing good jobs for our people.”

In addition to improvements at the company’s existing terminal in Port Hudson, including barge dock and truck station facilities, Genesis Energy will build approximately 200,000 barrels of storage capacity to accompany its existing 216,000 barrels of storage capacity. The construction of a new 18-mile pipeline will provide the company with the capability to connect the Port Hudson facility to ExxonMobil properties that include the Maryland Terminal north of Baton Rouge, the Anchorage Farm Tank in West Baton Rouge Parish and the ExxonMobil Baton Rouge Refinery, along with other Louisiana refineries. The pipeline will have an ultimate capacity of about 350,000 barrels of crude oil per day. Genesis Energy has entered into definitive agreements with ExxonMobil in which ExxonMobil will grant Genesis Energy a land lease at the Maryland Terminal site and secure preferential rights for throughput at the facilities.

“With the expansion of our operations in Louisiana, Genesis looks forward to a strong future in the state and an increase in our contribution to the local economy,” Nathanson said. “This project positions Genesis as an efficient midstream service provider for crude oil supply and logistics in the region. Genesis is committed to being a good neighbor and will keep the community informed throughout the development of this project. We also intend to hire locally where possible during the construction phase and long-term operations of the facilities.”

Genesis Energy is headquartered in Houston. The company’s operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico. Genesis Energy currently employs more than 300 people in Louisiana who support additional refinery and chemical operations around the state.

LED began working with Genesis Energy on the current project in January. The company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption incentives.

Construction is expected to begin in early 2013, with upgrades to the Port Hudson Terminal and new crude oil pipeline to be completed by the end of 2013. Completion of the Maryland Terminal is scheduled for the second quarter 2014. Hiring for the expansion will begin in late 2013.

“The success of Genesis Energy will further contribute to the strength of the Baton Rouge area. We congratulate the company on their upcoming expansion and appreciate their commitment to Baton Rouge,” said Mayor-President Melvin “Kip” Holden of Baton Rouge and East Baton Rouge Parish.

“BRAC was pleased to work with Genesis Energy to help their project come about,” said President and CEO Adam Knapp of the Baton Rouge Area Chamber. “We continue to work to execute our recently completed target industry strategy, and projects like the Genesis expansion fuel our region’s momentum.”

About Genesis Energy
Genesis Energy LP is a diversified midstream energy master limited partnership headquartered in Houston. Genesis operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil, refined products and certain industrial gases. Genesis operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico. For more information, visit

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