Hazelwood Energy Hub plans to development a 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 barrels 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 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 Sept. 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 a 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 US 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.