A crude oil export terminal on the Mississippi River in Plaquemines Parish and 700-mile pipeline project will be a $2.5 billion investment, creating 35 permanent jobs, state officials said Wednesday in detailing the previously announced project.
Kansas-based Tallgrass Energy LP said earlier this month that it and Drexel Hamilton Infrastructure Partners are building the project. It is designed as a public-private partnership, with multiple deepwater docks along the Mississippi River being provided by the Plaquemines Port Harbor & Terminal District.
The proposed Plaquemines Liquids Terminal at the mouth of the Mississippi River is permitted for up to 20 million barrels of crude oil storage and could be fully operational by mid-2020, Louisiana Economic Development officials said Wednesday.
The terminal would be fed by a pipeline with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing, Oklahoma, to Louisiana. Tallgrass also plans to build an offshore pipeline extension to give the terminal the added capability of loading very large crude carriers, the largest petroleum tankers currently in use, officials said.
The project is expected to support at least 1,250 temporary construction jobs, officials said.
“Louisiana’s port infrastructure is a vital framework for our economy, and this project will make good use of our export capabilities along the Mississippi River,” Gov. John Bel Edwards said in Wednesday's announcement. “Adding a project such as this to our crude oil facilities, our refineries and our growing LNG export network will further strengthen Louisiana’s position as a world energy export leader.”
Docking facilities along the Mississippi River provided by the Plaquemines Port Harbor & Terminal District will give terminal operators the ability to load and unload larger-capacity vessels now traversing the recently expanded Panama Canal.
“A public-private partnership is the ideal way to develop a project like the proposed Plaquemines Liquids Terminal,” Tallgrass Energy President and CEO David G. Dehaemers Jr. said.
“We are an oil and gas parish and it’s exciting that some of our job losses on the exploration and production side can be replaced by new facilities that store, blend and export crude oil around the world,” said Chairman Charlie Burt of the Plaquemines Port.
“Our board was quick to offer support because the project fits the model of the port providing the site, and the private partners covering the cost of development,” Plaquemines Port Executive Director Sandy Sanders said. “PLT is a great fit within the port jurisdiction, which is also home to refineries, and liquefied natural gas and methanol facilities currently being developed.”