Oct. 1, 2015 10:04 AM
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Locally based Hazelwood Energy Hub announced Sept. 30 plans to develop a storage and blending facility in St. Landry Parish. The company says 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.

Louisiana Economic Development, Hazelwood executives and St. Landry Parish officials, including St. Landry Parish Economic Development and the Port of Krotz Springs, announced the project along with community and business leaders in Opelousas late Wednesday afternoon.

The $400 million project will create 120 permanent positions with an average salary of $63,500, plus benefits. According to an LED analysis, the expansion also will result in an estimated 145 new indirect jobs, along with 200 construction jobs. Construction is expected to begin by early 2016, with completion by early 2018.

Stone Bridge Energy Partners, a Houston-headquartered developer of diversified energy and chemicals projects, is serving as lead developer of the Hazelwood project. Other business partners and contractors expected to be involved are Cameron Measurement Systems, Florida Marine, Macquarie Energy, Quanta Services, SGS Petroleum and WSP/Parsons Brinckerhoff.

One Acadiana's business development team, led by Jim Bourgeois, helped facilitate the investment, including activities related to site development, incentive calculation and eligibility and outlining future opportunities.

According to the press release:

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.

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.

Hazelwood Energy Hub says the new facility will serve energy producers and the Gulf Coast's 17 refineries.

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