Tallgrass Energy and Drexel Hamilton Infrastructure plan to build a crude oil export storage terminal on the Mississippi River in Plaquemines Parish.
The terminal is permitted for up to 20 million barrels of crude oil storage and could be fully operational by mid-2020.
The Plaquemines Liquids Terminal is planned as a public-private partnership with multiple deepwater docks along the river to be furnished by Plaquemines Port Harbour & Terminal District. The docking facilities will provide terminal operators with the ability to load and unload larger capacity vessels now using the recently expanded Panama Canal.
It will be fed by a pipeline with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing, Oklahoma to Louisiana. Tallgrass Energy also plans to build an offshore pipeline extension to give the terminal project the added capability of loading VLCCs.
It is estimated that the pipeline and terminal project will represent a $2.5 billion capital investment.
David G. Dehaemers Jr, president and CEO of Tallgrass Energy, says: 'A public-private partnership is the ideal way to develop a project like the proposed Plaquemines Liquids Terminal. Tallgrass Energy is delighted to have the opportunity to work with the Plaquemines Port Harbour & Terminal District and to contribute positively to the economic health of the parish and the state of Louisiana.'
Plaquemines Port chairman Charlie Burt adds: 'We are an oil and gas parish and it's exciting that some of our job losses on the exploration and production side can be replaced by new facilities that store, blend and export crude oil around the world.'
Growing Contanda's storage footprint in HoustonPetrochemical production fuels a bright storage future Oil market eyes November Iran sanctions hiatus A new name in Cushing Unleashing the potential of American energy Storage for the US's largest refining market Expanding the US global market share Trade war questions temper US midstream sector growth plans Safe & productive solutions for tank cleaning Ground improvement plays supporting role for storage tanks