Hazelwood Energy Hub will develop a $400 million (€354 million) blending and storage facility in St Landry Parish, Louisiana.
The facility will include four salt dome storage caverns and additional above ground tanks for up to 13 million barrels of storage, with substantial opportunities for further expansion.
The facilities combination of salt caverns and surface storage will provide storage for several crude and condensate varieties, with the ability to blend up to 10 types of crude simultaneously.
These developments mean that customers can specify the previse characteristics of their preferred blend to match market characteristics and refinery capabilities. The custom blend can then be delivered on an identity preserved basis for extended periods.
The hub will have access to an extensive pipeline network and will operate a barge loading and unloading facility at the Port of Krotz Springs. The site is also adjacent to the Union Pacific mainline and US Highway 190, which can connect to the Gulf Coast market.
Work is expected to start by early 2016 and is due to be complete by early 2018.