SPR FACILITIES OFFERED TO INDUSTRY AT ST. JAMES, LA.

The U.S. Department of Energy has offered to lease two of its Strategic Petroleum Reserve pipelines and a marine terminal in Louisiana to private industry. DOE plans to offer more SPR pipelines for lease during the next 6 months. Earlier this year, DOE said it may offer industry leases on the Louisiana terminal and all six pipelines in the SPR system (OGJ, Apr. 4, p. 83).

Oct. 10, 1994

2 min read

The U.S. Department of Energy has offered to lease two of its Strategic Petroleum Reserve pipelines and a marine terminal in Louisiana to private industry.

DOE plans to offer more SPR pipelines for lease during the next 6 months.

Earlier this year, DOE said it may offer industry leases on the Louisiana terminal and all six pipelines in the SPR system (OGJ, Apr. 4, p. 83).

Some private firms want to use the idle facilities, which connect SPR storage caverns holding 590 million bbl with private terminals and pipelines. DOE said leasing the facilities would generate revenues while lowering maintenance costs.

It proposes to lease the St. James marine terminal on the Mississippi River in St. James Parish, about 45 miles west of New Orleans. The terminal has six storage tanks totaling 2 million bbl capacity and two docks capable of accommodating tankers as large as 123,000 dwt.

Pipelines connect the St. James terminal to Capline and Locap oil terminals, which are linked to the Louisiana Offshore Oil Port.

Also offered for lease are 36 in. pipelines connecting St. James terminal with the Bayou Choctaw and Weeks Island SPR storage sites.

Deadline for lease offers is Nov. 18. DOE will hold a preproposal conference at the St. James terminal Oct. 25 to allow potential lessees to inspect the properties and ask questions.

Lessees will be required to surrender the facilities to the government in event of a drawdown and operate the pipelines as common carriers.