USD Group LLC Enters Mexico Market with Petroleum Products Terminal in Querétaro

HOUSTON–(BUSINESS WIRE)–USD Group LLC (“USDG”), through its subsidiary Querétaro Energy Terminal
(“QET”), has commenced construction activities on a multi-modal
transloading terminal to enhance petroleum product distribution
capabilities in Querétaro and surrounding areas. The greater Querétaro
market includes over one million residents and is located less than 150
miles from Mexico City.

“Our investment in QET provides an attractive opportunity to establish a
presence in the growing Mexican market while leveraging our logistics
expertise in support of an existing and profitable business,” said Steve
Magness, USDG’s Vice President, Business Development. “We believe rail
will provide timely, flexible and sustainable distribution capabilities
necessary to improve access to energy supplies that will help fuel
Mexico’s economic growth.”

QET development activities are underpinned by a multi-year take-or-pay
contract with an established operator in the area. Additionally, USDG is
actively marketing additional capacity that will be available upon the
commencement of operations, which is currently planned for the first
quarter of 2018.

QET will be serviced by the Kansas City Southern de Mexico railroad with
access to all North American Class 1 railroads.

About USD Group LLC

USDG and its affiliates are engaged in designing, developing, owning and
managing large-scale multi-modal logistics centers and energy-related
infrastructure across North America. USDG solutions create flexible
market access for customers in significant growth areas and key demand
centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among
other projects, USDG is currently pursuing the development of a premier
energy logistics terminal on the Houston Ship Channel with substantial
tank storage capacity, multiple docks (including barge and deepwater),
inbound and outbound pipeline connectivity, as well as a rail terminal
with unit train capabilities. For additional information, please visit texasdeepwater.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements with
respect to the timing of completion of construction of the QET
transloading terminal, the ability of the QET transloading terminal to
be sustainable and profitable, and the ability of USDG to market
additional capacity at the terminal. Words and phrases such as “is
expected,” “is planned,” “believes,” “projects,” and similar expressions
are used to identify such forward-looking statements. However, the
absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements relating to USDG are based
on management’s expectations, estimates and projections about USDG, its
interests and the energy industry in general on the date this press
release was issued. These statements are not guarantees of future
performance and involve certain risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecast in such
forward-looking statements. Factors that could cause actual results or
events to differ materially from those described in the forward-looking
statements include construction and cost-related risks; risks associated
with constructing and operating a terminal in a non-United States
jurisdiction; changes in general economic conditions; the effects of
competition, in particular, by pipelines and other terminalling
facilities; the supply of, and demand for, rail terminalling services
for crude oil, refined products and biofuels; hazards and operating
risks that may not be covered fully by insurance; disruptions due to
equipment interruption or failure at the QET terminal or third-party
facilities on which our business is dependent; natural disasters,
weather-related delays, casualty losses and other matters beyond our
control; and changes in laws or regulations to which we are subject,
including compliance with environmental and operational safety
regulations, that may increase our costs. USDG is under no obligation
(and expressly disclaims any such obligation) to update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise.

Contacts

USD Group LLC
Commercial Contact:
Steve Magness,
(405) 535-6077
[email protected]
or
Gooden
Group
Media Contact:
Meg Martin, (405) 397-6156
[email protected]