Key US oil trading hub expands storage capacity

The Clovelly Hub is looking to expand its aboveground storage capacity by more than 10%.
The hub, one of the largest oil trading and distribution centres for crude oil in the US, will build three new aboveground storage tanks. This will add 1.1 million barrels of crude oil storage at the South Louisiana hub. It is expected to be complete by late summer 2016.
Once complete, total crude oil capacity will swell to more than 70 million barrels. The new tanks will join 15 others now in operation and bring the total capacity of aboveground storage to 10.1 million barrels. In addition, 60 million barrels of capacity is contained in underground storage capacity.
LOOP is currently the largest privately owned repository for crude oil destined for refineries in the US.
Several regional Louisiana businesses have been contracted to work on the tank construction project. Each tank will have blending capabilities to meet quality specifications for crude oil refining and trading clients.
The hub now received domestic oil from Texas drilling sites, drilling in the Gulf of Mexico and from the US mid-continent.
Tom Shaw, president of LOOP, the owner and operator of the Clovelly Hub says: ‘We are expanding to meet the changing needs of our industry.
‘Expanding North American production has made the Clovelly Hub an even more attractive destination for crude producers and shippers demanding high-volume storage and ready access to refiners.
‘Last year was the first time in 34 years that we received, stored and distributed more domestic crude oil than foreign.’