$400M Fuel Storage and Distribution Facility to be Constructed in St. Landry Parish
Hazelwood Energy announced in late-September that it will construct a $400 million crude oil storage and blending complex in St. Landry Parish, La.
The facility is designed and will be constructed to blend ten types of crude oil on premise. It will include four salt dome storage caverns and above-ground tanks capable of storing up to 13 million gallons with options and space for expansion. When completed, the Hazelwood Energy Hub will be the world's largest blending operation, serving 17 Gulf Coast refineries.
Contractors will construct a blending facility, pump facilities and an electrical substation along with power transmission lines and access roadways.
The 750-acre site sits in Port Barre, adjacent to Spectra Energy's Bobcat Gas Storage facility. The project is being developed by Houston-based Stone Bridge Energy Partners along with several key partners including Florida Marine, Macquarie Energy, Quana Services and SGS Petroleum.
The existing salt dome on the property has been used for energy storage since 1955 when Gulf Oil used it for LPG. 84 acres of the salt dome were converted into FERC-permitted natural gas storage in 2005. Hazelwood Energy Hub is now adding an additional 340 acres of the dome to meet the growing needs of the energy market.
Nearly all of the facilities and transportation infrastructure will be constructed on leased facilities or along existing rights-of-way, minimizing community impact. The project is expected to create 200 construction jobs. Construction is expected to begin in early-2016 with a targeted completion date in early-2018.
"The facility’s custom oil blending processes and its extensive petroleum storage capabilities will serve markets across the Gulf Coast while providing good jobs here at home for Louisiana workers,” said Louisiana Governor Bobby Jindal in a statement.