Hazelwood Energy Hub to develop world class blending facility in St. Landry Parish
$400 million project delivers the perfect barrel for refiners, producers, industrials and traders
OPELOUSAS, La., Sept. 30, 2015 /PRNewswire/ -- Hazelwood Energy Hub (Hazelwood) today announced the development of a world-class blending facility in St. Landry Parish, Louisiana. The facility's combination of salt caverns and surface storage, along with in-line blending of up to 10 types of crude, will offer customers the ability to custom order the perfect barrel for their needs.
The Hazelwood site sits on 750 acres adjacent to the Bobcat Gas Storage facility owned by Spectra Energy. Several of the current Hazelwood team members participated in the original development of Bobcat. Initially, it will include four salt dome storage caverns and additional above ground tanks for up to 13 million barrels of storage, with substantial opportunities for further expansion. The facility will provide storage for several crude and condensate varieties, with the ability to blend up to 10 types of crude simultaneously. Hazelwood's customers can specify the precise characteristics of the their preferred blend in order to match market characteristics and refinery capabilities. This custom blend can then be delivered on an identity preserved basis for extended periods.
Louisiana Economic Development, Hazelwood executives and St. Landry Parish officials announced the project at a gathering of state and parish officials along with community and business leaders in Opelousas on Wednesday evening, September 30. Key business partners and contractors expected to be involved in the project include Cameron Measurement Systems, Florida Marine, Macquarie Energy, Quanta Services, SGS Petroleum, Stone Bridge Energy Partners and WSP/Parsons Brinckerhoff.
Hazelwood will have access to an extensive pipeline network and will operate a barge loading and unloading facility at the Port of Krotz Springs. The site is also adjacent to the Union Pacific mainline and U.S. Highway 190. These transportation options connect the facility to customer markets throughout the Gulf Coast. Virtually all of the facilities and transportation infrastructure will be located on owned/leased facilities or along existing rights-of-way, minimizing community impact. Project construction is expected to begin by early 2016, with completion by early 2018.
About Hazelwood Energy Hub
St. Landry Parish-based Hazelwood Energy Hub will help energy producers and the 17 Gulf Coast refineries get their perfect barrel. The project will provide safe, secure storage for multiple types of crude oil and other hydrocarbon liquids in underground salt dome caverns, with supplemental surface tanks to optimize the facility. Each cavern will store a specific crude type using proven technology that is the industry's preferred storage technique. Hazelwood will custom blend multiple types of crude in real-time for each customer, allowing for maximum efficiency, optionality and the ability to quickly respond to changing markets to optimize profits. The project will ultimately be the world's largest blending operation. The company's website is www.hazelwoodenergyhub.com.
About Stone Bridge Energy Partners
Stone Bridge Energy Partners, a Houston-headquartered developer of diversified energy and chemicals projects, is the lead developer of the Hazelwood project. Stone Bridge, in partnership with leading strategic and financial investors, is pursuing fundamental opportunities in the North American energy complex. Stone Bridge identifies market imperfections, including structural arbitrage, delivering fast track projects that capitalize on these opportunities at lowest cost and lowest risk. Stone Bridge is attracted to high growth markets, with compelling margin opportunities, quality partners and defensible competitive barriers. The company's website is www.stonebridgeenergy.com.
SOURCE Hazelwood Energy Hub
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