ENERGY IN...

E N E R G Y I N M O T I O N

RAIL • STORAGE • DOCKS • PIPELINES • TRUCKwww.JeffersonEnergyCo.com

Jefferson Energy Terminal was founded in 2012 to meet the needs of the Gulf Coast Refining market. The vision was to connect the abundant North American crude production to the U.S. Gulf Coast and beyond. The terminal became operational in the Fall of 2013. The heat assist heavy crude system was added in January of 2014. Current projects expected to complete in 3Q/4Q 2017 will expand the terminal’s service to ethanol, heavy refinery feedstocks, and rail loading of refined products for export to Mexico and domestic distribution. The terminal provides customers with the following capabilities:

OVERVIEW

REFINING PROXIMITY Located in the center of the 9.1 million barrel per day Gulf Coast refinery market, the terminal is accessible by rail, interstate highway, and marine modes.

The Beaumont / Port Arthur area is home to multiple major refineries with a total operating capacity of 1.5 million barrels per day.

The terminal sits on a 250-acre site on the east bank of the Neches River Ship Channel at the Port of Beaumont – the fourth largest port by cargo volume in the United States.

Aframax capable ship dock and an inland barge dock links Jefferson Energy Terminal to domestic and foreign marine destinations.

The Neches River at the Port of Beaumont is maintained at a depth of 40 feet with expansion plans to a depth of 48 feet.

ENERGY IN MOTION

• Multi-modal facility connecting rail, marine, truck, and pipeline. Loading and unloading capability including: ethanol, fuels, and crude oil from the heaviest Canadian bitumen to the lightest condensate.

• Directly served by three Class 1 Railroads (UP, BNSF, KCS), with power sharing agreements with CP and CN.

• Over 2,100,000 barrels of shell storage capacity in service or under construction with full build-out potential of 18 million barrels.

• Highway off-ramp under construction which will connect truck traffic from Interstate 10 directly to the terminal – 4Q 2017.

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THREE CLASS 1 RAILROADS - A COMPETITIVE POSITIONThe terminal is directly served by three U.S. Class I Rail Carriers (Union Pacific, BNSF, Kansas City Southern) as well as two Class l Canadian Carriers (CN and CP) by virtue of horsepower sharing agreements. This connects the terminal to bulk liquid origination and destination terminals in the United States, Canada and Mexico. These superior rail logistics allow for direct haul without the need for handoffs between carriers. This flexibility provides service availability as well as competitive transportation rates.

CONNECTIVITYRAIL • MARINE • PIPELINE • HIGHWAY

SITE DESIGN FEATURES• 3 - 120 rail car unit train heat assist heavy crude

unloading systems • 1 - 120 rail car free flow rail car

unloading system• 1 - 120 rail car ethanol unloading system• Receiving and staging tracks• Over 3 million barrels of storage

— Heated & insulated tanks — Crude oil and blending tanks — Ethanol tanks — Refined product tanks

• 2 - Deep water marine dock – Aframax capable • 1 - Inland Marine Dock • Tank truck loading and unloading systems

FLEXIBILITYMAIN TERMINAL SITE DESIGN FEATURES

ROOM FOR EXPANSIONJefferson Energy Terminal currently operates on 250 acres and has room to grow. The terminal has an additional 190 acres north of the Main Terminal and 65 acres south of the Main Terminal for full build-out potential of 18 million barrels of storage and four Aframax capable docks.

Existing

Under Construction

Planned


STORAGE TANKS• Current and under construction tank capacity:

— 7 X 123 KBBL Crude Oil, Fuel Oil, Intermediates

— 2 X 280 KBBL Crude Oil, Fuel Oil, Intermediates — 3 X 187 KBBL Ethanol

— 1 x 123 KBBL Ethanol

• Total tank shell capacity of these 13 tanks equals over 2.1

million barrels.

• The terminal has total potential capacity of 18 million

barrels of storage.

SHIP DOCK• Marine dock for ships, ocean going and inland barges

(40 feet of water depth)

• Equipped with state-of-the-art dock vapor recovery and

thermal oxidizer for emissions control

• Capable of berthing Aframax ships

• Very efficient docks

• Up to 25,000 barrel per hour transfer rate.

BARGE DOCK• Inland barge dock capable of loading / unloading four 30,000

barrel barges simultaneously.

• Equipped with state-of-the-art dock vapor recovery and

thermal oxidizer for emissions control.

CAPABILITIES

RAIL ACCESS• Three Class I and two Canadian Class I Railroads

with mainline access (no short line)

• Multiple receiving and staging track to handle

additional unit trains before or after unloading

MEASUREMENT SYSTEMS• The terminal is equipped with custody transfer

metering skids (LACT units) for rail and

truck unloading.

• The LACT units are equipped with a prover to

accurately measure volumes of liquid through

the terminal.

TRUCK UNLOADING / LOADING• Dedicated service overpass directly from Interstate

10 into the terminal is under construction to be

completed and in service 4Q 2017

• Two crude unloading stations are able to

accommodate up to four tank trucks per hour

• Crude unloading capacity of over 8,500 barrels

per day with the ability to expand

• Ethanol truck loading capable of loading 20,000+

barrels of ethanol per day.


CRUDE OIL SYSTEMS

FREE FLOW UNLOADING SYSTEM• Currently capable of unloading one unit train of 120

free flowing crude oil rail cars in under 24 hours.

• Light crude oils produced in the U.S. can be unloaded

by rail and blended with Canadian bitumen to

develop feedstocks that optimize refinery yields and

maximize product margins for Gulf Coast refineries.

BOILERS• Two 2,500 horsepower boilers and one 300

horsepower boiler produce steam to heat, unload,

and store a full range of heavy crude oils.

BLENDING TO CUSTOMERSPECIFICATIONS• Jefferson has staff highly experienced in crude

blending properties to meet the needs of

area refineries.

• Low API crudes and bitumen can be delivered to

the Gulf Coast from Canada by rail and blended

with medium and light crudes.

Jefferson Energy Terminal was built to be the most efficient rail terminal in the region for receiving unit trains of heavy Canadian conventional and unconventional (bitumen) crudes. The low API Canadian crude and bitumen barrels handled at the terminal are a perfect fit for refiners that need to increase feedstocks to underutilized Gulf Coast crackers and cokers. These heavy barrels also work very well in the fuel oil and broader black oil market. The heavy offloading system, designed to an asphalt specification, can turn unit trains in under 24 hours with options to direct load to barge or to tank for storage and blending.

• Most efficient rail terminal in the region for receiving unit trains of light and heavy

conventional crudes; undiluted and low dilution bitumens.

• Storage tanks are equipped with heating and paddle mixers.

• Robust blending capability of crude oils brings exceptional value to refiners.

• The docks run at efficiency levels that exceed many other terminals along the Gulf Coast.

HEAT ASSIST HEAVY CRUDEUNLOADING SYSTEM• Currently capable of heating and unloading one unit

train of up to 128 rail cars of heavy crude oil in under

24 hours.

• Designed for pure bitumen, railbit, and heavy

conventional crude.

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PHASE I STORAGE• JGP will construct 550,000 barrels of storage in four

tanks. Three tanks (each at 150,000 bbls working capacity) will be used for various export grades on a commingled basis. One 100,000 barrel tank will be used for domestic (ASTM) ethanol.

• Each export tank will hold two full unit trains of 110 railcars, and will have drain-dry capability to facilitate changes in specifications as needed.

PHASE II EXPANSION• The joint venture has the option to build additional

storage tanks as needed for Phase II expansion, as well as another ship dock and additional truck loading bays.

LOADING & UNLOADING• The rail unloading system will have an offloading

rack as well as a series of ladder tracks to receive unit trains.

• Ethanol loading rates will be 10,000 barrels per hour to ship and 5,000 barrels per hour to barge.

• Ethanol unloading rates will be 7,500 barrels per hour from unit train. Expected turn time is 15-16 hours from placement of unit train to release.

ETHANOLTHE JOINT VENTUREIn 2016, Jefferson Energy and Green Plains Inc. formedJGP Energy Partners, a joint venture focused on creating a world class intermodal export and import distribution hub for ethanol and other liquids. The project will provide customers unparalleled access to a deep water terminal with unmatched logistical optionality, service, reliability and lower overall cost. The two partners, combining the second largest producer of ethanol globally with the owner of a logistically advantaged and efficient rail/marine terminal, are committed to developing better solutions for customers where rail meets water. The JGP terminal location provides a sustainable competitive advantage for a host of potential clients looking for a better answer and improved flexibility.

RAIL ADVANTAGEAt the JGP Energy Terminal, there are no short-line railroad connections required to access any Class I railroad (UP, BNSF, KCS). The rail carriers have direct mainline access and will bring unit trains directly into the terminal without delay. The facility will be able to discharge up to 120 car unit trains of ethanol in under 24 hours, with the capacity to hold two full unit trains at any one time. In addition to ideal rail capability, the site has efficient marine docks to support a high flow ethanol export, import and domestic distribution operation.

Customer interest in the project has been very strong. We are in the process of contracting capacity in order to supply the market 3Q17.

THE TERMINAL• The JV ethanol infrastructure will be located

within the existing terminal owned and operated by Jefferson Energy Companies, located on 250 acres in Beaumont, Texas. It is positioned in one of the largest refinery markets in the U.S., located in the center of the 9.2 million barrel per day Gulf Coast region (PADD III).

• The terminal is directly served via mainline access by three Class I railroads: Union Pacific, Burlington Northern Santa Fe, and Kansas City Southern.

• These three Class I railroads have power sharing arrangements with Canadian Pacific and Canadian National railroads.

• Direct rail access is available to most ethanol production plants in North America.

DISTRIBUTION• The ethanol tanks will provide exibility to meet

the demand for multiple export grades as well as domestic (ASTM) spec.

• Domestic ethanol will be distributed through a two-bay truck loading rack.

• The dock will accommodate a wide range of domestic and export marine vessels, including: - Brown water barges - Blue water barges - Chemical Tankers - Panamax ships - MR ships - Aframax ships

• Dedicated lines will be maintained to ensure petroleum-free undenatured ethanol. PERMITS

• The terminal will have a Distilled Spirits Plant (DSP) permit from the Alcohol & Tobacco Tax and Trade Bureau (TTB).

• Free Trade Zone (FTZ) and ISCC certification are under consideration.

COMMERCIAL CONTACTS

Frank Rodriguez, VP - Commercial DevelopmentPhone: (713) 906 - 5884E-mail: [email protected]

Nathan Lakers, VP - Blendstar, LLCPhone: (402) 952 - 4805E-mail: [email protected]

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FUEL EXPORTSThe Jefferson Energy Terminal is constructing a

rail loading system for refined products export to

Mexico in Q3 2017. Three tanks (87 and 93 octane

gasoline and Ultra Low Sulfur Diesel) will be in

service with ability to load by rail as well as marine.

With the liberalization of the Mexican sector, we

see high levels of interest from refiners and traders

with operations in the U.S. to supply ULSD and

gasoline directly to Mexico. Many parts of Mexico

are undersupplied due to inadequate terminal and

pipeline capacity. Shipping refined products by rail

into these markets allow for a quick and efficient

solution to meet customer demand.

Gasoline & Diesel Market Demand Per State

Gasoline (Kbd)

Diesel (Kbd)

Total (Kbd)

Monterrey (Nuevo León) 43 21 64San Luis Potosi 22 13 35Querétaro 18 12 30Mexico City 95 19 114Torreón (Coahuila) 10 11 35Durango 22 13 35

PIPELINE

The Jefferson Energy Terminal plans to

construct two pipelines for bi-directional

capability to and from the Beaumont/

Nederland, TX area. This connectivity will allow

Jefferson to distribute up to 350 centistoke

material to and from regional breakout

storage terminals and refineries in Southeast

Texas and Louisiana. Several other pipeline

options are in discussions with expectation to

start construction in 2018.FUEL BY RAILTO MEXICO

HermosilloChihuahua

El Paso

Laredo

Monterrey

Durango

Torreón

Zacatecas

Brownsville

Eagle Pass

San AntonioHouston

Aguascalientes

Guadalajara

Satillo

San Luis Potosi

Mexico City

Querataro

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COMMITMENT TO THE ENVIRONMENT• Jefferson Energy is dedicated to protecting the

environment, the community, our employees and

contractors, and aims to meet or exceed regulatory

requirements

• The facility is equipped with state-of-the-art railcar

and dock emissions control.

EXPERIENCE• Jefferson Energy’s team has broad expertise in

refining, terminal operations, and rail, marine, and

truck loading and unloading.

• Seasoned industry professionals lead our company

and facilities in the areas of Operations, EHS,

Engineering, Construction, and Maintenance.

SAFETY/EMERGENCY RESPONSE• Safety is a core value of Jefferson Energy Companies.

• Our goal is zero incidents and accidents.

• The facility is equipped with emergency response

equipment necessary to mitigate, contain, and

control emergencies by trained personnel.

PUBLIC-PRIVATEPARTNERSHIP

The terminal is a public-private partnership between the Port of Beaumont and Jefferson Energy Companies.

According to the American Association of Port Authorities, the Port of Beaumont is the fourth largest port in volume in the United States.

The terminal is owned and operated by Jefferson Energy Companies, a midstream oil company that serves the Gulf Coast. Jefferson Energy Companies is majority-owned by Fortress Transportation and Infrastructure Investors Ltd (NYSE: FTAI), which is managed by Fortress Investment Group (NYSE: FIG).

INTEGRITY


POTENTIAL OF5,500,000 BBLS. OF STORAGE

(65 ACRES)

POTENTIAL OF10,000,000 BBLS OF STORAGE

(190 ACRES)

www.JeffersonEnergyCo.com

POTENTIAL BUILD OUT

SOUTH

NORTH TERMINAL

06132017

FRANK RODRIGUEZVice President, Commercial Development – U.S. & CanadaJefferson Energy CompaniesMobile: (713) 906 - [email protected]

CUSTOMER CONTACTS CORPORATE CONTACT

ARTURO GARCIA DE LA RIVAVice President, Commercial Development – MexicoJefferson Energy MexicoMobile: (281) 687 - [email protected]

MARK VIATORDirector, Public & Government AffairsMobile: (409) 926 - [email protected]

JEFFERSON ENERGY COMPANIES CORPORATE OFFICE9595 Six Pines Drive, STE 6370The Woodlands, Texas 77380(281) 677 - 4900

JEFFERSON ENERGY BEAUMONT OFFICEEdison Plaza Building350 Pine Street Suite 1725Beaumont, Texas 77701

JEFFERSON ENERGY TERMINAL SITE94 Old Highway 90Vidor, Texas 77662(409) 783 - 9191

LAWRENCE WALDRONChief Commercial OfficerJefferson EnergyOffice: (281) 677 - 4900 (ext. 210)[email protected]

MATT EVANSVice President, Crude Marketing & Commercial DevelopmentJefferson EnergyOffice: (281) 677 - 4900 (ext. 201)[email protected]

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