Since its formation in 1996, Houston-based Genesis Energy has built a powerful onshore and offshore midstream network that primarily caters to refiners. The company operates four divisions that include offshore pipeline transportation, onshore facilities and transportation, marine transportation, and sodium minerals and sulfur services.
Genesis Energy, L.P., is a growth-oriented master limited partnership headquartered in Houston, Texas. Through their four divisions: offshore pipeline transportation, refinery services, marine transportation and onshore facilities and transportation, they provide an integrated suite of services to refineries, oil producers, and industrial and commercial enterprises. Their operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.
Not surprisingly, demand destruction from COVID-19 has bee-stung all of Genesis’ operating segments this year with refiners hit hard, June’s Tropical Storm Cristobal in the La., Gulf wreaking havoc, and global orders of soda ash—a critical industrial component—cancelled for the rest of the year. Genesis, however, responded quickly by eliminating $33 million in debt during 2Q, delaying projects, tucking away cash flow, and confirming go-aheads of several major offshore projects already contracted to the company’s infrastructure in the Gulf.
Here’s a look at the company’s operations:
Offshore Pipeline Transportation
Genesis owns, and owns interest in, 2,400 miles of offshore crude oil pipelines that transport oil and natural gas from the Gulf of Mexico to onshore refining centers in Texas and La. Its offshore natural gas assets include 1,000 miles of pipe that primarily service deepwater production in the Gulf of Mexico and flow supplies to downstream pipelines or processing facilities. Genesis also holds interests in 19 offshore platforms in the Gulf that are used as hubs and production handling and pipeline maintenance facilities.
Onshore Pipelines and Terminals
With pipelines, storage, and multi-modal transportation options, Genesis operates a wealth of crude oil and refined products midstream infrastructure in Texas, La., Ark., Miss., Ala., Fla., Wyo., and the Gulf of Mexico. The company’s assets include 450 miles of crude oil pipelines in Ala., Fla., La., Miss., and Texas; four crude oil loading/unloading facilities in La., Fla., and Miss.; access to a suite of more than 200 trucks, 400 trailers, 504 railcars, and 4.3 MMBbls of storage capacity along the Gulf Coast; and 270 miles of CO2 pipelines in Miss.
Genesis Marine serves refineries and storage terminals along the Gulf and East coasts, Canada, the Great Lakes, Intracoastal Canal, and the nation’s western river systems where it also owns terminals. The company offers both inland and offshore fleets that include 130 vessels along with 82 inland and nine offshore barges.
Sodium Minerals and Sulfur Services
The company divides this segment into two businesses—Alkali and Refinery Services—with Alkali being the newest addition in 2017 to the Genesis family. And it’s kind of a big deal. Genesis’ Alkali is the largest leaseholder of the world’s largest known deposit of trona ore found in Green River, Wyo. Trona ore is a mineral that contains soda ash, which—once refined—is used in numerous applications including glass manufacturing, fiberglass insulation, coloring agents, synthetic detergents, and fertilizers. But soda ash also is used in the removal of sulfur dioxide and hydrochloric acid from stack gases. With two manufacturing sites and seven processing facilities in Wyo., Genesis produces more than 4 million tons of soda ash per year.
The company’s Refinery Services offers engineering, design, and construction, as well as treating and processing sour gas.
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