By Sherry Koonce
By Sherry Koonce
The News staff writer
Local refineries are looking to coastal waters outside Freeport as a new method to import crude oil — one that will augment continued use of area ports while providing added flexibility and increased reliability.
Three companies announced Monday plans to construct a $2 million floating port and pipeline network 36 miles off the coast of Freeport in waters 115 feet deep.
The Texas Offshore Port System, or TOPS, is a joint venture of Enterprise Products Partners LP and Teppco Partners LP, both based in Houston, and Oiltanking Holding Americas Inc., a subsidiary of Germany’s privately held Marquard & Bahls AG.
Oceanic tankers too large to navigate Texas channels will be able to unload crude in the deep Gulf waters before it is pumped via pipeline to shore. Once ashore, another pipeline network will carry the oil to storage tanks and refineries, the Associated Press reported Monday.
Exxon Mobil Corp. and Motiva Enterprises LLC have made long-term commitments to utilize the facility.
With Motiva ramping up for a $7 billion expansion that will increase the refinery’s capacity by $325,000 barrels of crude a day for a total of 600,000 barrels received daily, the new terminal will offer numerous advantages, Verna Rutherford, spokesperson for Motiva’s Port Arthur refinery, said in a telephone interview Monday.
“Its a good thing for our company, our region, because it helps to ensure we have a reliable means of bringing in crude, which is especially important as we come on line with the expansion project in 2010,” Rutherford said.
Rutherford said the company currently received oil via tankers that travel up the Sabine-Neches Water Way. About five times a year there are incidents when a ship cannot get into the water way because of heavy fog, or daylight restrictions.
Though the company plans to continue its use of the Sabine-Neches Water Way, there are concerns that the channel could be overpopulated with ships by the year 2014 because of continued economic growth in the area.
“That is a risk that the offshore port mitigates,” Rutherford said.
Rick Rainey, spokesperson with Teppco’s Houston office, said the company studied several locations before selecting Freeport.
With it’s close proxmity to deep water and existing pipeline infrastructure, the location allows Teppco to maximize the ability to serve as many customers as possible, Rainey said.
Most of the ships delivering to the Golden Triangle are from the Persian Gulf, West Africa, Venezuela and the Mexican Gulf, he said.
With a capacity of 100,000 barrels of crude an hour, or 1.8 million barrels per day, the facility will be able to handle about 18 percent of the total U.S.. crude imports.
“Based on the commitment from Motiva and Exxon, it is clearly a project that is needed whose time has come,” Rainey said. “We are not by any means saying ports are not necessary. If refiners are going to obtain the supplies they need they are going to need other options as well.
Rainey said construction of the floating port has no bearing on whether the U.S. should drill other of the nation’s coastal waters.
“The reality is, for the foreseeable future, the U.S.. will continue to need imports of crude oil to meet the demand,” Rainey said.
The Freeport terminal is similar to a similar project called the Louisiana Offshore Oil Port, which handles about 12 percent of the nation’s crude imports. LOOP has been around since 1981 and is tied by pipeline to about half the nation’s refining capacity, much of it along the Mississippi River from the New Orleans area to Baton Rouge, the AP reported.
Contact this reporter at skoonce@panews.com.
