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***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub
opisalerts@opisnet.com
2016-04-29 09:06:30 EDT
***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub
Colonial Pipeline said Friday that it is proceeding with plans to connect its
3.2 million bbl Port Arthur Products Station (PAPS) terminal with a new dock and
associated facilities at Port Arthur on the Texas Gulf Coast.
Colonial projects that construction of the new dock and tanks could be finished
in late spring 2017.
The planned facility will give Colonial customers access to marine shipping via
the southern-most segment of the Sabine-Neches Waterway. This waterway serves
the commercial ports of Beaumont, Orange and Port Arthur.
This is line with an OPIS report in June 2015 on Colonial Pipeline's big plans
for the Port Arthur terminal, which was acquired from Shell last year. The plans
were aimed at unleashing the full potential for marine, rail, pipeline and truck
logistics connectivity.
Industry sources told OPIS then that Colonial Pipeline was working on enhancing
the terminal connectivity and unlock gasoline and butane blending opportunities.
The terminal was planning to offer a full suite of logistics services to
customers, which could transform it into a gasoline trading, support and export
hub.
Colonial has other company-owned products terminals, which primarily serve the
operations of its system, but the products station is the firm's first entry
into the independent terminal business, sources said.
Colonial Pipeline was planning to add rail car capability, new pipeline
connections and connectivity to the underutilized marine docks on the Gulf
Coast, they said.
Colonial said Friday that it is engaged in negotiations with several customers
for use of the new dock.
The products station is located in a major refining center; the four nearby
refineries, including Valero and Total, produce more than 1.5 million b/d of
refined petroleum products (over 8% of the total U.S. daily refining capacity).
When completed, the dock will be able to berth up to Panamax-sized vessels with
no height or daylight-only restrictions.
The Port Arthur dock location provides a cost-advantaged option to the congested
Houston Ship Channel and is closer to the Gulf's open waters than Beaumont.
The new dock facility will be supported by 2 million bbl of new storage capacity
which, when combined with products station storage, will provide customers
flexibility in serving markets.
Colonial Pipeline consists of more than 5,500 miles of pipeline, connecting
Houston and the Gulf Coast refineries with markets across the South and the East
Coast. Colonial terminates in Linden, N.J., on the New York harbor. It
transports more than 2.6 million b/d of gasoline, diesel, home heating oil, jet
Sent: Friday, April 29, 2016 9:06 AM
To: OPIS Price Watch Alert [opisalerts@announce.opisnet.com]
Page 1 of 2***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub
5/1/2016https://webmail.colpipe.com/owa/?ae=Item&t=IPM.Note&id=RgAAAABhf4st2txwR72%2...
fuel and fuels for the U.S. military.
--Edgar Ang, eang@opisnet.com
Copyright, Oil Price Information Service
---
You are currently subscribed to opisalerts as: bsande@colpipe.com.
To unsubscribe, please send your request via email to energycs@opisnet.com.
To find out more about OPIS visit us @ http://www.opisnet.com
Page 2 of 2***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub
5/1/2016https://webmail.colpipe.com/owa/?ae=Item&t=IPM.Note&id=RgAAAABhf4st2txwR72%2...

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PAPS OPIS News Story April 2016

  • 1. ***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub opisalerts@opisnet.com 2016-04-29 09:06:30 EDT ***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub Colonial Pipeline said Friday that it is proceeding with plans to connect its 3.2 million bbl Port Arthur Products Station (PAPS) terminal with a new dock and associated facilities at Port Arthur on the Texas Gulf Coast. Colonial projects that construction of the new dock and tanks could be finished in late spring 2017. The planned facility will give Colonial customers access to marine shipping via the southern-most segment of the Sabine-Neches Waterway. This waterway serves the commercial ports of Beaumont, Orange and Port Arthur. This is line with an OPIS report in June 2015 on Colonial Pipeline's big plans for the Port Arthur terminal, which was acquired from Shell last year. The plans were aimed at unleashing the full potential for marine, rail, pipeline and truck logistics connectivity. Industry sources told OPIS then that Colonial Pipeline was working on enhancing the terminal connectivity and unlock gasoline and butane blending opportunities. The terminal was planning to offer a full suite of logistics services to customers, which could transform it into a gasoline trading, support and export hub. Colonial has other company-owned products terminals, which primarily serve the operations of its system, but the products station is the firm's first entry into the independent terminal business, sources said. Colonial Pipeline was planning to add rail car capability, new pipeline connections and connectivity to the underutilized marine docks on the Gulf Coast, they said. Colonial said Friday that it is engaged in negotiations with several customers for use of the new dock. The products station is located in a major refining center; the four nearby refineries, including Valero and Total, produce more than 1.5 million b/d of refined petroleum products (over 8% of the total U.S. daily refining capacity). When completed, the dock will be able to berth up to Panamax-sized vessels with no height or daylight-only restrictions. The Port Arthur dock location provides a cost-advantaged option to the congested Houston Ship Channel and is closer to the Gulf's open waters than Beaumont. The new dock facility will be supported by 2 million bbl of new storage capacity which, when combined with products station storage, will provide customers flexibility in serving markets. Colonial Pipeline consists of more than 5,500 miles of pipeline, connecting Houston and the Gulf Coast refineries with markets across the South and the East Coast. Colonial terminates in Linden, N.J., on the New York harbor. It transports more than 2.6 million b/d of gasoline, diesel, home heating oil, jet Sent: Friday, April 29, 2016 9:06 AM To: OPIS Price Watch Alert [opisalerts@announce.opisnet.com] Page 1 of 2***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub 5/1/2016https://webmail.colpipe.com/owa/?ae=Item&t=IPM.Note&id=RgAAAABhf4st2txwR72%2...
  • 2. fuel and fuels for the U.S. military. --Edgar Ang, eang@opisnet.com Copyright, Oil Price Information Service --- You are currently subscribed to opisalerts as: bsande@colpipe.com. To unsubscribe, please send your request via email to energycs@opisnet.com. To find out more about OPIS visit us @ http://www.opisnet.com Page 2 of 2***Colonial to Build New Port Arthur Dock; Transforming to Gasoline Hub 5/1/2016https://webmail.colpipe.com/owa/?ae=Item&t=IPM.Note&id=RgAAAABhf4st2txwR72%2...