Hazelwood to Develop Crude Oil Blending, Storage Facility

Hazelwood Energy Hub plans to develop a crude oil blending facility in St. Landry Parish, La., the company said on Sept. 30. The new 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 make custom orders.

According to Hazelwood, the site sits on 750 acres adjacent to the Bobcat Gas Storage facility owned by Spectra Energy. Initially, it will include four salt dome storage caverns and additional above-ground tanks for up to 13 million barrels of storage, with 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 said that customers can specify the precise characteristics of their preferred blend in order to match market characteristics and refinery capabilities.

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, La., on Sept. 30.

“Energy has long been a cornerstone of Louisiana’s economy, and our state has been the setting for many innovative developments in the industry over the years,” Gov. Bobby Jindal said in a statement. “That’s still the case today, as we welcome Hazelwood Energy Hub to St. Landry Parish. The facility’s custom oil blending processes and its extensive petroleum storage capabilities will serve markets across the Gulf Coast while providing good jobs here at home for Louisiana workers.”

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.

Project construction is expected to begin by early 2016, with completion by early 2018. – JD