RBN Energy: Looks At A Second Terminal Along the Gulf Coast

Continuing its series on Gulf Coast terminals, RBN Energy turns its attention to Nederland.

Unlike the brand spanking new ECHO Terminal, Nederland has been around for a hundred years or so since Sun Oil Company first set up a terminal in the early twentieth century. Sitting in the middle of all that crude oil and refining business has given rise to seriously good pipeline connections along the way. For starters, Nederland is connected to the four nearby refineries we mentioned above by pipeline and can therefore provide them with crude oil supplies as well as storage and blending.

As part of the recently completed Motiva 325 Mb/d refinery expansion project, Sunoco built 2 MMBbl of crude storage for Shell and a new 30-inch connecting pipeline between Nederland and the refinery. The $10 B Motiva expansion project was delayed for 6 months by damage to the new crude distillation unit but is expected to come back online this week ( first week of December 2012) and increase the refinery capacity to 600 Mb/d.