$400M, 13M barrel oil storage, blending facility announced

A $400 million crude oil storage and blending complex that will employ about 120 people at an average annual salary of $63,500 was announced.
Hazelwood Energy Hub, to be located east of Port Barre, is to include six above-ground crude oil storage tanks and utilize four salt dome caverns for additional storage of numerous crude oil varieties.
The facility, with a capacity of more than 13 million barrels of oil, will blend and ship crude oil to 17 refinery customers in the Gulf Region.
Bob Edmundson, president of Hazelwood Energy Hub, said, “When beginning this project, the development team considered locations in several neighboring states.”
Edmundson added, “The efforts of St. Landry Parish and Louisiana Economic Development were instrumental in bringing this project to the people of St. Landry Parish. We look forward to many years of cooperation, making Louisiana the center of Gulf Coast energy development.”
The announcement was made at the Delta Grand Theater in Opelousas on Wednesday.
Louisiana Economic Development estimates the petroleum hub project will result in 145 new indirect jobs, for a total of more than 265 new jobs in Acadiana and surrounding regions. In addition, the project is expected to create 200 construction jobs.
The company expects to begin construction in 2016, and the facility is expected to begin operation in 2018, a Louisiana Economic Development stated.
Steve Grissom, secretary of Economic Development, said, ““Hazelwood Energy Hub represents a new venue for one of the state’s most important benchmark industries — the energy industry.”
Grissom said the project is innovative and will allow handling up to 60 different crude varieties in storage and blending.
“When you think about the impact of this projoect it is an innovation not just here in Louisiana, but one that is going to impact the energy industry across the Gulf South and across the U.S.,” Grissom said Wednesday.
Hazelwood will have access to an extensive network of five major pipelines and will operate a barge loading and unloading facility on the Atchafalaya River at the Port of Krotz Springs. It also is situated near the Union Pacific rail line and U.S. 190. The site is adjacent to the Bobcat Gas Storage complex, which Edmundson developed a decade ago. That facility was sold by Edmundson and other investors to Spectra Energy in 2010.
St. Landry Parish President Bill Fontenot said, “This is one of the largest investments made in the parish, and with it comes jobs and opportunity.”
Fontenot added, “We welcome the Hazelwood Energy Hub with open arms. St. Landry Parish is happy to be in the right place at the right time, to be able to accommodate such a project.”
A Louisiana Economic Development news release said discussions about a potential project with the company began in December 2014. In conjunction with the energy hub development, the company is expected to utilize Louisiana’s Quality Jobs program. The company considered sites in Texas, Arkansas, Mississippi and Alabama before choosing to build its facility in Louisiana.
Bill Rodier, executive director of the St. Landry Parish Economic Development District, said, “St. Landry Economic Development is very pleased to be working with such a great group of private and public partners who have come together to make this game-changing project possible.”
He added, “This is yet another example of how St. Landry Parish is ‘Moving Forward’ and of the untapped business opportunity that we still have available here in this parish.”
The project includes a a new 35-acre barge terminal at the Krotz Springs port on the Atchafalaya River.
Gary Soileau, executive director of the Greater Krotz Springs Port Commission, “Their plans to build and operate a state-of-the-art facility for crude oil storage and blending will be a big positive for our port, our community and our parish. The new facility will provide a large economic impact with construction and permanent jobs.”
Jason El Koubi, president and CEO of One Acadiana, said in the news release, “Hazelwood Energy’s decision to invest in St. Landry will grow and diversify one of our region’s cornerstone industries, and validates Acadiana’s outstanding business climate and workforce. The collaborative efforts of our local partners working with One Acadiana and LED make this win a platform for creating high-quality jobs for Acadiana families.”
Rodier said, “This is kind of an apex of economic development. Unfortunately it doesn’t happen as much as all of us would like it to happen because it takes a whole bunch to make this happen.”
Rodier told the Delta Grand crowd about the secrecy involved in landing the project in St. Landry Parish.
After a meeting in Baton Rouge on the project, “I got a call the next morning from one of the legal counsel that was part of the meeting. ‘Did you take notes at that meeting?’ I said, ‘Yeah, I always take notes.’ Those of you who know me know I always carry a planner with me.”
The caller told Rodier, “You’ve got to shred the pages. Really, shred the pages and I want confirmation you shredded the pages in your planner.”
Rodier said he walked over to a shredder with his planner in hand and his cell phone “... and literally dropped pages of my planner into the shredder ...”
Rodier said he has been in St. Landry Parish for two and half years and considers the parish full of opportunity.
“Hopefully, this is just the start of this project turning into something that is absolutely incredible for the future of St. Landry Parish,” he said.
Bruce Bernard, president and CEO of Stone Bridge Energy Partners, said there is the potential to make another $350 million investment.
The lifespan of the project is projected at 30 years, but “...it could easily be extended another 30 years and beyond ...,” Bernard said.
Hazelwood Energy Hub was incorporated in 2013 to develop crude oil storage, blending and pre-refining services in St. Landry Parish, the state’s news release said. For more information, visit www.hazelwoodenergyhub.com.
Among those who were at the Hazelwood Energy Hub announcement at the Delta Grand Theater in Opelousas Wednesday were, from left, Celeste Gomez, St. Landry Parish Tourism executive director; and Patton Launey and Randy Esters, both of Louisiana State University Eunice.