Crude Oil

Proximity to Key Industry

Petroplex is located in the heart of a major strategic supply corridor for crude oil. 148 miles from the mouth of the Mississippi, the proposed facility lies in close proximity to 8 oil refineries, more than 20 trading and marketing companies, and over 15 major chemical manufacturers, including Dow Chemical, Huntsman, and Dupont. This is a highly strategic location with planned pipeline access to the oil refineries in the South Louisiana corridor from Baton Rouge to Belle Chasse (refining capacity of 3 million barrels every day).

Changing Crude Dynamics

Improved fracturing technology has dramatically bolstered the amount of crude oil production from domestic shale formations and Canadian oil sands. St. James Parish is poised to maintain and expand its role as a center of crude oil refining and blending amidst these changes, as:

  • Shale crude production is largely light sweet crude, which will limit the suitability of certain Texas refineries
  • Traditional delivery points, such as Cushing, Oklahoma, are land-locked and/or lack significant ability to expand and service the new inflows of crude oil
  • The existing refinery capacity and pipeline network in St. James is accessible both by land and by water
  • Permian Basin production expected to flow to Texas Gulf Coast, resulting in substantial flows of Eagle Ford crude to St. James
  • Canadian oil sands production is replacing Gulf supply to Midwest refineries
  • Emerging Utica shale production expected to arrive in St. James, along with Bakken supply not used at Midwest refineries
  • Shell’s reversal of the Ho-Ho pipeline to bring crude oil from Houston to the St. James area

Illustration of current crude product movements into St. James

Strategic for Blending

Existing blending capabilities in St. James will have to adapt to the changing supply of crude oil to the region from domestic shale and Canadian oil sands. Petroplex incorporates state-of-the-art crude blending capabilities for bitumen, shale crudes, and Gulf medium sour crudes. Petroplex will be the most strategic choice for blending because of the facility’s ability to store this wide variety of crudes and its state-of-the-art blending capabilities.

Integration with Interstate Pipelines

Petroplex will be connected to LOCAP, the pipeline system operated by the Louisiana Offshore Oil Platform (“LOOP”) that includes ExxonMobil’s Northline, Capline, and Red Stick (to the Dep’t of Energy’s Strategic Petroleum Reserve), and will be integrated for receipt and delivery into the full interstate pipeline system that converges in St. James including Houston-Houma (“Ho-Ho”), Ship-Shoal, and the planned Westward-Ho pipeline.

Connectivity to Refineries

Taken together, the refineries with connectivity to St. James have monthly crude volumes of more than 93 million barrels. The refineries connected by pipeline to St. James are the following:

Refinery Location Refining Capacity (barrels per day)
ExxonMobil Baton Rouge 502,000
Marathon Garyville 464,000
CITGO Lake Charles 427,800
ConocoPhillips Belle Chasse 247,000
Motiva Convent 235,000
Motiva Norco 235,000
Valero St. Charles 205,000
Chalmette Refining Chalmette 192,500
Valero Memphis 180,00
Valero Meraux 85,000
Alon Krotz Springs 80,000
Calcasieu Refining Lake Charles 32,000
Lion Oil El Dorado 75,000
Placid Refining Port Allen 57,000
Shell St. Rose 55,000
Grand Total Daily Refining Capacity 3,072,300
Monthly Crude Volumes 93,449,125

Key Development Milestones

  • Project is fully permitted and construction ready
  • FEED study was completed in spring 2013
  • Targeted on-line date in Q1 2015
  • Quanta Services, Inc. to provide lump sum, date certain, wrapped EPC services for the facility
  • Experienced equity sponsors including the Macquarie Group, one of the largest investors in bulk liquids storage in the world