Giuliano Bologna : Very helpful. And then can you talk more about you into this in light of all the currently announced production base in the region, are there any opportunities there for projection?
Ken Nicholson: It’s funny you ask. That’s the big next project for us and what we’re hoping to get signed up this quarter. it’s a pretty dynamic market out in Utah. Right now, there is — when you just think about the scale of the market, total production in the basin is about 150,000 barrels per day of crude oil. The first 85,000 barrels stay local and feed the local refineries and anything in excess of that 85,000 is “exported” out of the state and all that crude oil goes to the Gulf. So today, you’ve got 65,000 barrels going to the Gulf. Production is increasing from 150,000 barrels per day to 300,000 barrels per day over the next 6 to 12 months. So you get a sense for the scale. And all of that incremental 150,000 barrels are going to be exported to the Gulf.
That’s the equivalent of 3 trains per day. At Jefferson, we have the capacity to bring in roughly a train a day, maybe a little bit more of waxy crude. It’s a very high-margin business for us because not only do we get the heating and unloading, but we get the blending as well because the crude is typically blended before it goes into a refinery. So it’s a rapidly developing market. There’s been a lot of capital committed to more production and the expansion of the 2 major terminals out in the basin. And so we expect to see more products flowing out of the basin as early as here in the fourth quarter and certainly into next year, and we’re very hopeful that a big chunk of that volume comes to Jefferson.
Giuliano Bologna : Very helpful. And then switching to Repauno. I’m curious if you’ll be able to announce who the third-party entity is that you signed a contract with.
Ken Nicholson: Well, I think what we’ll certainly do is once that contract is signed, we’re finalizing it right now. It’s getting very close. We will certainly issue a press release to make sure people are aware that’s been signed. It’s a very big development for Repauno. So that’s certainly something we will communicate once executed. Whether we can share the name of the counterparty. Obviously, we need to get their permission to do so. I can tell you, it’s a very well-known, large, integrated, energy company and investment grade and what have you, obviously, if we can share their name, we definitely will.
Giuliano Bologna : That’s great. And then I’m curious if you’re still looking at tuck-in acquisitions on the rail side with Transtar around Jefferson?
Ken Nicholson: We always are — we’re certainly always looking. I will admit that market has been a little bit lighter capital markets and financing for acquisitions is slower these days. But yes. We’re looking at one situation in the freight rail space that I think is exciting could be an interesting fit for Transtar. And we’re going to get a couple of opportunities in the terminal space that would be nice tuck-ins with Jefferson are highly complementary to what we do at Jefferson. And so hopefully, those things come together. But we’ll always be looking and hoping to add scale to our businesses through investments and acquisitions. I think we’re just going to be cautious and conservative, of course, as we go.
Operator: Thank you. That concludes the question-and-answer session. I’d like to turn the call back over to Alan for any closing remarks.
Alan Andreini : Thank you, Michelle, and thank you all for participating in today’s call. We look forward to updating you after Q4.
Operator: Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.
