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)|
|Calcasieu Refining||Lake Charles||32,000|
|Lion Oil||El Dorado||75,000|
|Placid Refining||Port Allen||57,000|
|Grand Total||Daily Refining Capacity||3,072,300|
|Monthly Crude Volumes||93,449,125|