The firm expects the upgrades to boost the ethanol offloading efficiency and capacity at the terminal, allowing for offloading of up to 108 car unit trains.
Upon completion of the expansion project utilize existing infrastructure at the site, including up to 4.5 million gallons of ethanol storage, the terminal will be capable of blending and distributing up to 9 million gallons per month.
Separately, JP Energy also signed an interconnection agreement with an affiliate of Magellan Midstream Partners to connect North Little Rock refined products terminal to Magellan’s Little Rock Pipeline, providing access to both Gulf Coast and Midcontinent refineries.
JP Energy executive chairman and CEO Patrick Barley said: "The Magellan interconnection will provide our customers with greater operational flexibility for product deliveries from multiple production zones.
"Our ability to leverage our existing infrastructure at the site will allow us to provide the lowest cost ethanol in Central Arkansas and beyond."
Scheduled to enter service during the second quarter of 2016, the two projects are estimated to cost approximately $5m.
In 2015, JP Energy Partners signed a 10-year fee-based gathering agreement with Discovery Natural Resources for the development of an extension of Silver Dollar Pipeline crude oil gathering system into the core of the Midland Basin, the US.
