What USD Group does

USD Group LLC is a private, Houston-headquartered midstream energy infrastructure company that designs, develops, owns, and operates large-scale multi-modal logistics centers and energy-related midstream assets across North America (USA, Canada, Mexico). Founded in 2000 (rebranded from US Development Group in 2014), the company generates revenue primarily through multi-year take-or-pay terminalling services agreements with investment-grade oil and gas producers, refiners, and energy counterparties, supplemented by railcar fleet services. Its terminal network spans origination and destination assets including the Hardisty Rail Terminal (AB), Port Arthur Terminal (TX), St. James Terminal (LA), Eagle Ford and Niobrara (origination), Richmond (VA), Houston Ship Channel (TX via TexasDeepwater JV), and refined products terminals in Querétaro and Chihuahua, Mexico.

The company's core differentiator is its patented Diluent Recovery Unit (DRU) technology (Canadian patent C10G 31/06; U.S. patent pending), which separates diluent from raw bitumen to produce DRUbit™ — a proprietary 95% bitumen non-hazardous commodity designed for safe rail transportation. The DRU, a 50/50 joint venture with Gibson Energy at Hardisty, became fully operational in December 2021 with ConocoPhillips contracted for 50,000 bbl/d of capacity and shipments routed via Canadian Pacific (CP) and Kansas City Southern (KCS) to the U.S. Gulf Coast. The DRUbit by Rail™ network is projected to reduce carbon emissions by ~20% versus dilbit by rail and ~30% versus dilbit by pipeline, providing an ESG narrative alongside cost competitiveness with pipelines.

USD Group's go-to-market is enterprise field sales with direct B2B relationships securing long-term take-or-pay contracts before infrastructure development. Key customers and partners include ConocoPhillips Canada (DRU anchor), Phillips 66 (Port Arthur pipeline connectivity), Gibson Energy (Hardisty JV), Pinto Realty Partners (Houston Ship Channel JV), Energy Capital Partners ($1B+ equity investor), and Class 1 railroads (CP, KCS, BNSF, Union Pacific, CSX, Ferromex). The company's subsidiary USD Partners LP (NYSE: USDP) provides a public market window for certain assets. Diversification efforts include USD Clean Fuels LLC (biofuels terminals, 2023) and Mexico market expansion. Energy Capital Partners holds a meaningful equity interest in the parent US Development Group LLC.

Name

USD Group

Legal name

USD Group LLC

Website

https://usdg.com

Company type

Private

Founded year

2000

Operating status

Operating

Headcount range

101–250 employees

Short description

USD Group is a private, Houston-based midstream energy infrastructure company that owns and operates a North American network of rail and terminal logistics assets, anchored by its patented Diluent Recovery Unit (DRU) producing DRUbit™ for safe heavy crude rail transportation from Western Canada to the U.S. Gulf Coast under take-or-pay contracts with investment-grade oil and gas customers.

Ownership category

akta.pro rank

Product category

Midstream Energy Logistics and Terminaling Services

NAICS

Petroleum Bulk Stations and Terminals (424710)

SIC

Wholesale-Petroleum Bulk Stations & Terminals (5171), Oil & Gas Field Services, Nec (1389), Wholesale-Petroleum & Petroleum Products (No Bulk Stations) (5172)

akta.pro primary industry

Crude Oil & Condensate Terminals (Tank Farms, Marine/Truck/Rail Loading) (EUALAEAA)

akta.pro secondary industries

Refined Products Terminals (Gasoline, Diesel, Jet, Heating Oil) (EUALAEAB), NGL / LPG Storage & Terminals (Propane, Butane, Ethane, Y-Grade) (EUALAEAC), Marine Terminals & Port Storage (Jetties, Docking, Bunkering Interfaces) (EUALAEAG), Refinery Offsites, Storage & Loading (Tankage, Truck/Rail/Marine Loading) (EUALAGAK)

Keywords

• Crude oil logistics
• Rail terminal operations
• Midstream infrastructure
• Diluent recovery technology
• Energy logistics services

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Technology or R&D, Supply Chain

Revenue model

1. Terminalling Services: USD generates revenue through multi-year, take-or-pay terminalling services agreements with investment-grade customers. These contracts provide fee-based revenue with minimum volume commitments regardless of actual usage, providing stable cash flows.
2. Railcar Services: USD provides leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail. Revenue is generated from railcar fleet management and related logistics services.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

USD Group designs, develops, owns, and operates large-scale multi-modal logistics terminals and midstream energy infrastructure across North America. The company provides crude-by-rail origination and destination terminaling, patented Diluent Recovery Unit (DRU) processing that produces DRUbit™ (a proprietary 95% bitumen heavy Canadian crude product), ethanol and biofuel terminalling, NGL transloading, and multi-modal logistics services under long-term take-or-pay agreements with investment-grade oil producers and refiners.

Product overview

USD Group LLC is an independent provider of broad energy infrastructure solutions engaged in designing, developing, owning, managing, and operating large-scale multi-modal logistics centers and midstream infrastructure assets throughout North America. The company operates across three main pillars: its proprietary DRU (Diluent Recovery Unit) technology and the resulting DRUbit(TM) product (a 95% bitumen crude specifically designed for safe rail transportation, launched in 2021 as a 50/50 JV with Gibson Energy at Hardisty, Alberta); a network of crude-by-rail and crude terminals including origination terminals (Hardisty Rail Terminal, Hardisty Terminal, Hardisty South Terminal, NGL Transload Facility), destination terminals (Port Arthur Terminal, St. James Terminal, Richmond Terminal, Eagle Ford Terminal, Niobrara Terminal), and the Houston Ship Channel development via TexasDeepwater Partners JV; and USD Clean Fuels LLC for low-carbon fuels infrastructure including biofuels terminals in California and Mexico. The company was rebranded from US Development Group LLC to USD Group LLC in July 2014 and is headquartered in Houston, TX.

Differentiator

Problem solved

Functional benefit

Brands

• DRUbit: Proprietary heavy Canadian crude oil product created through the Diluent Recovery Unit process, designed for safe and efficient rail transportation with 95% bitumen concentration.
• DRUbit by Rail
• USD Clean Fuels

Products and services

• DRUbit™ Proprietary heavy Canadian crude oil product (95% bitumen) produced by USD Group's patented Diluent Recovery Unit process, designed for safe and economic rail transport to U.S. Gulf Coast and other destination markets. Sold to investment-grade refiners and marketers.
• Diluent Recovery Unit (DRU) Processing Patented thermal/chemical separation technology that converts diluted bitumen (dilbit) into DRUbit™ (95% bitumen) by removing the lighter condensate diluent, enabling safe, cost-effective rail transportation of heavy Canadian crude while recovering diluent for reuse by producers. Service is provided to Canadian heavy oil producers and marketers.
• Terminalling Services Multi-modal logistics terminaling services including railcar loading/unloading, storage, blending, and transloading for crude oil, ethanol, biofuels, and natural gas liquids. Operations span origination, destination, and hub terminals in the U.S., Canada, and Mexico, contracted to oil producers, refiners, and marketers under long-term take-or-pay agreements.
• Hardisty Rail Terminal (Canadian Diluent Hub) Crude-by-rail origination terminal at Hardisty, Alberta incorporating DRU processing capacity and unit train loading for DRUbit shipments to U.S. destinations. Designed to deliver 100,000 bpd with approximately 80,000 bpd of DRU processing capability, connected to Canadian crude pipeline networks including Enbridge Mainline.
• Port Arthur Terminal Destination terminal at Port Arthur, Texas on the U.S. Gulf Coast for offloading and storage of DRUbit and other crude received by rail from Hardisty. Provides approximately 585,000 barrels of storage capacity and vessel-loading capability for delivery to local and regional refineries.
• Houston Ship Channel Terminal Deepwater terminal development on the Houston Ship Channel designed to receive imports and facilitate exports of crude oil, with proposed capacity of approximately 615,000 bpd and 3.4 million barrels of storage. Connects Permian Basin crude to global markets.
• Richmond Terminal Ethanol transloading terminal in Richmond, California with unit train capabilities for receiving denatured ethanol by rail and delivering to local gasoline blenders and refiners in Northern California.
• St. James Terminal Crude oil and condensate rail unloading terminal on the Mississippi River at St. James, Louisiana, serving Louisiana Light Sweet (LLS) and other crude grades, with storage and marine loading capabilities.
• Eagle Ford Terminal Crude-by-rail origination terminal in the Eagle Ford shale play of South Texas, aggregating Eagle Ford crude production for shipment by unit train to U.S. Gulf Coast and other markets.
• Niobrara Terminal Crude-by-rail origination terminal in the Niobrara shale region providing unit train loading for crude production destined for U.S. Gulf Coast and other refinery markets.
• Hardisty Terminal Crude-by-rail origination terminal at Hardisty, Alberta providing loading capability for unit trains of Canadian crude destined for U.S. and other markets.
• Hardisty South Terminal Crude-by-rail origination terminal south of Hardisty, Alberta providing unit train loading for Canadian crude, complementing the Hardisty and Hardisty Rail Terminal (Canadian Diluent Hub) complexes.
• NGL Transloading Facility NGL (natural gas liquids) transloading facility in Stroud, Oklahoma receiving hydrocarbon gas liquids by truck from Mississippi Lime producers and loading unit trains for downstream delivery.
• Pier 122 Philadelphia Terminal Multi-modal deepwater terminal at Pier 122 on the Delaware River in Philadelphia providing Roll-on/Roll-off (RORO), break-bulk, and tank vessel capabilities for crude oil, ethanol, and other refined products distribution in the Northeast U.S.
• USD Clean Fuels Terminal Development USD Clean Fuels is the USD Group business line focused on developing, owning, and operating terminals and logistics infrastructure for clean fuels (ethanol, biodiesel, renewable diesel) and related products, serving blenders and refiners in markets such as California.
• DRUbit by Rail™ (DBR) Network Integrated crude-by-rail logistics solution combining DRU processing at the Hardisty Rail Terminal (Canadian Diluent Hub) with unit train rail service and destination receipt/storage at the Port Arthur Terminal, offering customers a single-source heavy Canadian crude transport alternative to pipelines.

Quantifiable outcome

• Carbon emissions reduced nearly 20% relative to dilbit by rail alternatives
• +2 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Gibson Energy Inc.coreStrategic or Co-development Partner · 3 December 201950/50 joint venture between USD and Gibson for the Diluent Recovery Unit (DRU) at Hardisty Energy Terminal. Gibson is a Canadian-based oil infrastructure company with operations focused around core terminal assets at Hardisty and Edmonton, Alberta.
• ConocoPhillips CanadacoreStrategic or Co-development PartnerConocoPhillips contracted 50,000 bbl/d of inlet bitumen blend processing through the DRU, with DRUbit™ shipped by CP and KCS to the U.S. Gulf Coast under long-term contract. ConocoPhillips re-blends DRUbit™ with diluents to create higher-value customized blends.
• Pinto Realty Partners LPcoreStrategic or Co-development PartnerTexas Deepwater Partners is a 50/50 joint venture between USD Group and Pinto Realty Partners for development of a 988-acre premier energy logistics terminal on the Houston Ship Channel with tank storage, multiple docks, pipeline connectivity, and unit train rail capabilities.
• Railserve, Inc.minorStrategic or Co-development PartnerStrategic alliance between USD Group and Railserve (Marmon/Berkshire Hathaway company) to develop rail-centric solutions that enhance growth, efficiency and capacity. Railserve provides third party rail switching, in-plant logistics, locomotive service, track maintenance, and car repair/inspection/maintenance services.
• Philadelphia Regional Port Authority (PhilaPort)minorStrategic or Co-development PartnerLong-term lease agreement with PRPA for use of Pier 122 in Philadelphia. USDG's Northeast Energy Terminal assumed responsibility for existing dry bulk operations at the pier facility.
• Hyundai GLOVISminorChannel Partner/ Reseller/ DistributorCommercial agreement for use of Pier 122 and adjacent land to facilitate automobile distribution throughout the Mid-Atlantic and Northeast, including imports from South Korea and other overseas manufacturing facilities.
• Shell Oil Products USminorStrategic or Co-development PartnerTexas Deepwater Partners and Shell entered into lease agreement to retrofit and refurbish the Deer Park Rail Terminal for loading refined products. SOPUS affiliate Shell Trading (US) Company also entered into related diesel supply agreement.
• Ferromex (Grupo México Transportes)minorChannel Partner/ Reseller/ DistributorFerromex services terminals in Mexico (Querétaro, Central Chihuahua) with access to all North American Class 1 railroads. Ferromex is the largest rail transportation company in Mexico with over 7,050 miles of rail track.

Scale indicators5 records

Recent moves9 records

Expansion highlights5 records

Direct peers

• Gibson Energy Inc. Gibson Energy operates the Hardisty crude oil storage and terminalling hub in Alberta and is USDG's 50/50 JV partner in the Diluent Recovery Unit. Its core terminal, storage, and marketing business at Hardisty is directly comparable to USDG's midstream terminal model.
• USD Partners LP: NYSE-listed MLP (USDP) that owns certain USDG-sourced midstream assets including the Hardisty origination terminal and ethanol terminals. Operates the same crude-by-rail and ethanol terminalling model as USDG's core business.
• Plains All American Pipeline: Plains is a leading North American crude oil midstream operator that directly acquired five USDG crude-by-rail terminals for $500M in 2012. Its crude oil gathering, terminalling, and transportation footprint overlaps directly with USDG's crude-by-rail network.
• Cando Rail & Terminals: Cando operates a rail-centric terminal network with 13,000+ railcar staging capacity across 15 terminals, and acquired USDG's Channelview rail terminal in December 2025. Directly competes in unit-train rail terminals for liquid hydrocarbons.
• Pembina Pipeline Corporation: Pembina operates extensive midstream infrastructure across Western Canada including terminals at Hardisty and crude oil / NGL transportation systems. Directly comparable to USDG's Canadian midstream and bitumen-related infrastructure plays.
• Buckeye Partners: Buckeye operates one of the largest U.S. networks of refined-product and petroleum bulk terminals, with a fee-based take-or-pay contract model comparable to USDG's terminalling agreements. Particularly comparable on the refined products / ethanol terminal side.
• Genesis Energy: Genesis operates a fee-based midstream business including crude oil pipelines, terminals, and marine transportation in the U.S. Gulf Coast. Its terminal and offshore pipeline operations overlap with USDG's Gulf Coast crude and condensate infrastructure.

Broad incumbents

• Targa Resources: Targa is a large midstream operator with NGL, crude, and gas processing assets. Its NGL fractionation and logistics footprint is comparable to USDG's Hardisty NGL transloading and broader midstream operations.
• Enbridge Inc. Enbridge is a dominant North American midstream incumbent operating the largest crude oil pipeline system serving Western Canada and the U.S. Gulf Coast — directly relevant to USDG's Western Canada egress thesis.
• Kinder Morgan: Kinder Morgan operates one of the largest U.S. networks of petroleum product terminals, crude pipelines, and transloading facilities, including an ethanol JV with USDG dating to 2010. Broadly comparable midstream model with overlapping terminal assets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/USDGroupLLC

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Subsidiaries8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about USD Group