NEW YORK, Nov 8 (Reuters) - Crude oil on a 90-car train that derailed in western Alabama on Friday was bound for a Shell chemicals plant near Mobile via Genesis Energy LP’s rail offloading facility in Walnut Hill, Florida, officials and sources said on Friday.
The train that was hauling roughly 65,000 barrels of crude derailed early on Friday morning, bursting into flames hundreds of feet high.
Genesis’ 75,000 barrels-per-day (bpd) transshipment facility was still able to receive crude on Genesee & Wyoming’s Alabama & Gulf Coast Railway in spite of the incident, a top company official said.
“Our facilities are still operational and still able to receive rail cars,” Genesis CFO Bob Deere said. “They’ve routed around areas where the accident occurred.”
The year-old facility is used to transfer crude into the firm’s Jay Pipeline System, which runs to a 80,000-bpd Shell Chemical LP plant and other pipelines.
Shell had not yet taken legal possession of the crude shipment, according to a source familiar with the matter.
During the third quarter, the Jay Pipeline System transported about 40,000 bpd, Deere said. The system comprises 100 miles (160 km) of pipeline and approximately 230,000 barrels of above ground storage, the company said on its website.
Genesis Energy is a midstream energy master limited partnership headquartered in Houston, whose assets include pipelines, storage terminals, and trucking operations.