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Terminal News

Fairway’s Houston crude oil storage facility starts operations

Initial commercial operations have started at Fairway Energy Partners’ Pierce Junction crude oil storage facility.           

The facility will serve the Houston area’s crude oil storage needs, which have been driven by the significant growth of pipeline-delivered crude oil into and through the Houston market.

The recently completed phase of construction, which started in July 2015, allows for the storage of crude oil and three segregated underground caverns that have a total capacity of 7.5 million barrels. Brine ponds, with approximately 6.5 million barrels of capacity were constructed along with central pumping and metering facilities.

The first phase also included the construction of two bi-directional pipelines that will connect the facility to the existing Houston area crude oil grid. The pipelines connect the facility to the Genoa Junction and Speed Junction hubs. This will allow the company to receive inbound crude oil from the Permian and Eagle Ford Basins, the Mid-Continent and Canadian regions as well as the Gulf of Mexico.

The initial operating capacity is already 70% subscribed.

CEO Chris Hilgert says: ‘We believe Fairway’s facility is responding to what our customers want and what the Houston market needs: a more efficient crude oil market, which will result in lower costs for storing and shipping crude oil.’

Construction of phase 1B will increase storage capacity by 2.6 million barrels to 10.1 million barrels and increase brine pond capacity to an equivalent capacity. The project is expected to commence in the second half of 2017, depending on customer commitments.

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