Port Bureau Updates-December

Enterprise and Navigator Load First Vessel at New Ethylene Export Terminal

Partners L.P. and Navigator Holdings Ltd. announced that the first cargo of ethylene has been exported from their 50/50 joint venture marine terminal located at Morgan’s Point, Texas, along the Houston Ship Channel. The Navigator Europa recently departed the facility carrying 25 million pounds of ethylene for Marubeni Corporation, a large Japanese trading company and long-term terminal customer.

The new terminal features two docks and the capacity to load 2.2 billion pounds per year of ethylene. A refrigerated storage tank for 66 million pounds of ethylene is also being built on-site and will increase the capability to load ethylene up to a rate of 2.2 million pounds per hour. Tank construction is expected to be completed in the fourth quarter of 2020.

The export terminal is pipeline-connected to Enterprise’s Mont Belvieu, Texas, complex, where the company is in the process of commissioning a high-capacity ethylene salt dome storage well with a capacity of 600 million pounds. Enterprise has designed the system to serve as an open market storage and trading hub for the ethylene industry through storage, connections to multiple ethylene pipelines and high-capacity export capabilities.

“Because of abundant natural gas liquids thanks to the shale revolution, the U.S. is now a global leader in ethylene production, with an unprecedented buildout of mostly ethane crackers along the Texas and Louisiana Gulf Coast, providing hundreds of thousands of jobs to local economies,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “Including a second wave of new petrochemical plants now being developed, production of ethylene is poised for continued growth and is expected to exceed 100 billion pounds per year by 2025. We are very pleased to join forces with Navigator to bring this new terminal to fruition, which complements Enterprise’s integrated pipeline and storage network, including the development of open market hubs for ethylene and polymer grade propylene that help ensure price transparency, reliability and flexibility for petrochemical producers and consumers.”

Vopak to Serve Multi-Billion Dollar Manufacturing Facility in Texas

Royal Vopak (Vopak) has announced it has been selected by Gulf Coast Growth Ventures (GCGV), the petrochemical joint-venture between ExxonMobil and SABIC, to design, build, own and operate a new industrial terminal on the U.S. Gulf Coast.

The terminal will be dedicated to serving the planned 1.8 million tonnes per year ethane cracker. All liquid products moved by marine vessels will be handled by the new Vopak terminal. The total capacity will be around 130.000 cbm tankage and will include pipelines connecting the terminal to the cracker complex.

“We’re very excited to support GCGV with this major industrial development in the U.S. This new terminal fits well into our growth strategy for industrial terminals,” said Eelco Hoekstra, chairman of the executive board and CEO of Royal Vopak. “We’re proud of our expertise and long track record of storing vital products. We have high standards on safety and environmental care, and we’re looking forward to becoming part of the Corpus Christi community.”

LyondellBasell Channelview Plant Enters New Phase of Construction

LyondellBasell has announced that construction on its propylene oxide (PO) and tertiary butyl alcohol (TBA) plant has surpassed 20 percent completion, with work shifting from foundation and infrastructure construction to vertical assembly. A key milestone of the project’s progress was marked by the recent delivery of a 25-story-tall, 601-ton distillation tower, which will be the tallest piece of equipment to be installed.

“We’ve moved another step closer to delivering our PO/TBA project, with construction taking place simultaneously at two of our sites,” said Dan Coombs, LyondellBasell executive vice president for Global Manufacturing, Projects and Refining. “This project creates a long-term value for our investors, and we remain on track to bring our largest PO/TBA facility in the world online in 2021.”

“As our infrastructure work wraps up, we’ll soon begin to see the plants emerge from both construction sites as these large pieces of equipment are installed,” said Joe Dorsch, PO/TBA project director. “We are one year into construction and our team has safely achieved several key milestones, which speaks to their talent and dedication.”

Based on an analysis by the Greater Houston Partnership, LyondellBasell’s $2.4 billion PO/TBA project is estimated to generate more than $450 million in tax benefits for the county, school district, community college and other local taxing districts over a 10-year period. The total project will create more than 2,200 construction jobs at the peak of construction and 160 permanent positions.



MARAD Awards Nine U.S. Ports Grants

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced grants for its America’s Marine Highway Program. Port Houston was one of nine U.S. ports awarded grant funding. MARAD awarded $180,000 for a study into infrastructure improvements that would support an existing service that moves containers loaded with resin across the port of Houston from the Baytown area, site of several resin manufacturers, to Port Houston’s two container terminals — Barbours Cut Container Terminal and Bayport Container Terminal. While moving containers by barge is slower than trucking cargo, the waterborne service can carry overweight containers, which is helpful in moving resins, said Richard Byrnes, chief infrastructure officer for Port Houston.

Rapidly growing resin exports are driving the expansion of container-on-barge services along the Gulf Coast.

Galveston Wharves Signs Long-Term Agreement with Royal Caribbean Cruises LTD. to Develop New State-of-the-Art Terminal

The Port of Galveston has signed a long-term contract with Royal Caribbean Cruises Ltd. (RCL) for a new $100 million cruise terminal. Through the public-private partnership, RCL will build the terminal, then lease it from the port for an initial term of 20 years, with four 10-year extension options.

The 2-story terminal will have a footprint of approximately 170,000 square feet on 10 acres in the eastern section of the port known as Pier 10. Construction is expected to begin in April 2020.

Anticipated to open in fall 2021, the facility will feature state-of-the-art technology, including mobile check-in and facial recognition to expedite guest arrival. The terminal will be designed and developed sustainably to meet LEED (Leadership in Energy and Environmental) certification standards.

“This is a historic moment, not only for the port but for Galveston. This partnership will bring economic growth to the region and the state by generating new jobs, spending and tax revenues. It also will bring more visitors to the island, a popular tourist destination,” said port director/CEO Rodger Rees.

As the Port of Galveston’s cruise industry grows, so does its local and state economic impact. According to a national report, Galveston’s cruise business grew by 13 percent in 2018, resulting in $1.5 billion in cruise industry direct expenditures and 26,241 jobs with total wages of $1.75 billion in Texas.

“We are excited to partner with the Port of Galveston to develop a world-class facility which will allow us to sail our newest, largest and most innovative ships from Texas starting with Allure of the Seas, one of the largest ships in the world,” Michael Bayley, president and CEO, Royal Caribbean International. “The new terminal will allow us to increase our guests to the region by 50%, generating a $100 million economic impact within the first year of operation.”

Coast Guard Commissions Cutter Daniel Tarr in Galveston, Texas

Photo courtesy of the USCG Sector Houston-Galveston Drone Team

The Coast Guard commissioned the Coast Guard Cutter Daniel Tarr, the service’s 36th fast response cutter, at Sector Field Office Galveston, Texas, on January 10.

VADM Scott Buschman, Coast Guard Atlantic Area commander, presided over the ceremony, along with RDML John Nadeau, Eighth Coast Guard District commander, and Lt. Nicholas Martin, Coast Guard Cutter Daniel Tarr commanding officer.

Daniel Tarr, the cutter’s namesake, was one of four Coast Guard coxswains who served with the Marines during the amphibious invasion of Tulagi, Solomon Islands, in August 1942. Tarr enlisted as a surfman and later became coxswain of USS McKean’s Boat Number 1 prior to the invasion. On August 7, 1942, Tarr, along with the other three coxswains, landed the first wave of the Marine Corps’ Raider Battalion on the beaches of Tulagi; in the following three days, they also delivered vitally needed equipment, ammunition and supplies. For their role in the landing of the Marines’ first wave, and capture of Tulagi, the four coxswains were awarded the Silver Star Medal. They were the first enlisted men in the Coast Guard to receive the Silver Star Medal.

The Coast Guard Cutter Daniel Tarr’s patrol area will encompass 900 miles of coastline for the Coast Guard’s Eighth District, from Carrabelle, Florida, to Brownsville, Texas. Fast response cutters are named after Coast Guard enlisted heroes and will replace the service’s 110-foot patrol boats. These vessels feature advanced command, control, communications, computers, intelligence, surveillance and reconnaissance equipment.

TAMUG Career Fair-April 7, 2020

Texas A&M University at Galveston will host a Career Fair on April 7 from 1 p.m. to 4 p.m.for employers who are seeking talent in marine sciences, maritime transportation, engineering, or business candidates.

Employers who are seeking full time and internship candidates and are interested in participating are welcome. Participants will receive a 6 foot table and chairs, free parking and employer appreciation lunch for a $200 registration fee.

For more information or to register, go to: www.tamug.edu/career and click on “Career Fair”.

Replace or Repower Your Drayage Truck or Cargo Handling Equipment with a TERP Grant

The Texas Commission on Environmental Quality (TCEQ) is preparing to open the Seaport and Rail Yard Areas Emissions Reduction Program (SPRY), a grant program under the Texas Emissions Reduction Plan Program. TCEQ will host an application workshop on Feb. 5, 2020 at 9:30 a.m. at the Greater Houston Port Bureau, 4400 Highway 225 East, Suite 200, Deer Park, Texas 77536. For more location information, please call (713) 678-4300.

The purpose of the SPRY program is to encourage individuals and entities operating at designated seaports and Class I rail yards in Texas’ nonattainment areas to replace or repower their older on-road vehicles, non-road yard trucks, or other cargo handling equipment with new models.

Applicants may be eligible for funding up to 80% of the cost to replace or repower eligible vehicles and equipment if, for at least two years preceding the submission date of the application, the applicant has:
    • Owned or leased the on-road vehicle, non-road yard truck, or other cargo handling equipment eligible to be replaced under the program; and

     • Operated the vehicle or equipment at one or more of the designated seaports or rail yards for a minimum of 200 visits or days of operation per year for the preceding two years.

Designated seaports include terminals and facilities located in the port of Houston (including the participating facilities of the Houston Ship Channel Security District), Port of Galveston, and Port Freeport.

Designated Class I rail yards include terminals and facilities located in the Dallas-Fort Worth area, Bexar County, Houston-Galveston-Brazoria area, and El Paso area.

For program opening information, sign up for email updates at www.terpgrants.org.

Have questions? Contact TCEQ toll-free at 800-919-TERP (8377) or by email at terp@tceq.state.tx.us.


Alliant Insurance Services Names Karey Vaught Executive Vice President

Alliant Insurance Services has announced that Karey Vaught has joined Alliant as executive vice president, managing director. Vaught will provide insurance and risk advisory services to energy and marine clients across the United States.

“Karey brings with him an impressive track record and strong leadership skillset,” said John Ludwig, Co-COO, Alliant Specialty. “We will work closely, leading the efforts of the Energy & Marine team nationwide. I look forward to his contributions to the growth and management of Alliant Energy & Marine.”

Vaught joins Alliant with expertise in midstream, domestic E&P, and oilfield service companies. In addition to his focus on the energy and marine industry, Vaught will work alongside the 11 Alliant Specialty industry verticals. With nearly 25 years of experience, Vaught previously was a Managing Director at a global insurance brokerage firm. He holds a bachelor’s degree in finance from Sam Houston State University. Vaught will be based in the Houston office of Alliant.

Greater Houston Council of the Navy League U.S. Event

The Greater Houston Council of the Navy League U.S., a non-profit organization, will participate in the upcoming 8th Coast Guard District commissioning event of two vessels: The CGC Edgar Culbertson and CGC Harold Miller. The vessels will be based out of Galveston and will be tasked to patrol the Texas/Louisiana coasts monitoring and enforcing illegal fishing, drug and human trafficking, cargo inspection, and port security.

The CGC Edgar Culbertson will be commissioned March 30, 2020; and the CGC Harold Miller will be commissioned in New Orleans, La. on May 8, 2020. If you would like to attend a commissioning event, the Greater Houston Council of the Navy League is seeking donations to attend the event: $1,000 – 2 tickets, $2,500 – 4 tickets ,
and $5,000 – 6 tickets

Donation checks may be sent and made payable to:
Attn: Jean Brown-The Coast Guard Foundation
CGD8 FRC Commissioning
394 Taugwonk Road
Stonington, CT 06378
(Fed. Tax ID #04-2899862)

  • Date February 3, 2020
  • Tags 2019 Dec/ 2020 Jan