Port Bureau Updates-October

Kinder Morgan Announces Commercial in Service of the First Unit at the Elba Island Liquefaction Facility

The Elba Liquefaction Company, L.L.C. (ELC), a joint venture between Kinder Morgan, Inc. (KMI) and EIG Global Energy Partners (EIG), announced on October 14 the commercial in service of the first of ten liquefaction units of the approximately $2 billion Elba Liquefaction project. Previously only a liquefied natural gas (LNG) import terminal, the Elba Island Liquefaction facility is now also able to produce LNG for export purposes. With the first unit in service, the company is now earning approximately 70 percent of the expected total daily revenue of the liquefaction units.

“This is a great milestone that was achieved with an exemplary safety record,” said Norman Holmes, president of Natural Gas South Region for Kinder Morgan. “It is also an important step for the United States as the country becomes a key energy exporter.”

Progress is also being made on the remaining nine units. Startup activities are underway on the second and third units, the commissioning of units four through six is ongoing, and construction on the remaining units is largely complete. Under full development, the Elba Island Liquefaction facility is expected to have a total capacity of approximately 2.5 million tonnes per year of LNG for export, which is equivalent to approximately 350,000 Mcf per day of natural gas.

ELC, a KMI joint venture with EIG as a 49 percent partner, will own the liquefaction units and other ancillary equipment. Certain other facilities associated with the project are 100 percent owned by KMI. The project is supported by a 20-year contract with Shell, who is subscribed to 100 percent of the liquefaction capacity.


Enterprise to Further Expand Midland to ECHO System; Expects Seminole to Return to NGL Service 2H2021

Enterprise Products Partners L.P., through its wholly owned affiliate M2E4 LLC (Enterprise), announced it has long-term agreements that support a further expansion of the Midland to ECHO crude oil pipeline system. Enterprise will build a pipeline that connects the partnership’s 6 million barrel Midland, Texas, storage facility to its ECHO Terminal through its Eagle Ford system in South Texas (the Pipeline). This Pipeline will have an initial capacity of 450,000 barrels per day (BPD) and can be expanded up to 540,000 BPD. Enterprise’s Houston crude oil distribution system includes more than 45 million barrels of storage, approximately 4 million BPD of export capacity from the partnership’s network of marine terminals, and connects to every refinery in the Houston, Texas City and Beaumont/Port Arthur area, representing approximately 4.5 million BPD of capacity. The Pipeline is expected to begin service in the first half of 2021.

In addition to supporting crude oil production growth from the Permian Basin, this Pipeline will allow Enterprise to optimize its entire Midland to ECHO system, which will be comprised of four pipelines, by moving barrels in the most cost-efficient manner. Enterprise expects to achieve up to $60 million of annualized cost savings, primarily from a significant reduction in the use of costly drag reducing agents and managing pump operations.

This expansion will also enable the partnership to maximize the operational flexibility of the Seminole Red pipeline in either crude oil or natural gas liquid (NGL) service based on the needs of the respective markets. Earlier this year, to respond to customer demand for crude oil pipeline capacity from Midland to the Houston market, Enterprise converted this Seminole pipeline from mixed NGL service to crude oil service. The partnership expects NGL production from the Permian Basin to increase by over 50 percent by 2025. To facilitate this growth, Enterprise currently expects to convert the Seminole Red pipeline back into NGL service during the second half of 2021. The partnership estimates that it can change the service of the Seminole pipeline from crude oil service to NGL service in less than sixty days.

Odfjell to Provide Bulk Liquid Terminal Services to INEOS

Odfjell Terminals Houston (OTH) has been selected to provide the bulk liquid terminal services for the acrylonitrile styrene acrylate (ASA) plant feed products at INEOS Styrolution’s new plant.

INEOS Styrolution® is a global supplier of styrenics. The company currently employs some 3500 employees at 20 production sites, with 24 sales offices and six R&D centers located in 10 countries. They are a major company in terms of polystyrene and styrenics specialties production and styrene monomer production with over $5.4 billion in annual revenues.

In March 2017 INEOS Styrolution announced plans to increase production capacity of ASA and acrylonitrile butadiene styrene (ABS) in the Americas. This includes construction of a new 100 000 tpy capacity ASA plant at its Bayport Texas plant site. This will be the first new plant to be constructed by Styrolution since its founding in 2011, having acquired its production facilities through acquisitions of existing plant sites. The facility will be constructed within the company’s Bayport site which currently houses the world’s largest styrene monomer plant. The new ASA plant is expected to be operational in 2021.

OTH has been selected to provide the bulk liquid terminal services for the ASA plant feed products, butyl acrylate and acrylonitrile. This includes the receipt, storage and pipeline transfer of these feed products from OTH to the ASA plant.
The ASA plant site will include packaging and warehousing for the finished pelletised products for final distribution to their customers.

Bill Law, senior manager sales and business development, Odfjell Terminals Houston, commented: “OTH is extremely honored to partner with INEOS Styrolution on its new Bayport ASA plant. We look forward to supporting this new plant and possibly other INEOS efforts for many years to come.”

LBC Tank Terminals Wins 2019 EHS Innovation Award in Transport & Logistics

LBC Tank Terminals (LBC), a global operator of bulk liquid storage facilities, won a prestigious environment, health, and safety (EHS) award in September for the company’s innovative use of Pro-Sapien’s EHS software on Office 365. Out of 80 submissions, LBC took home the Transport and Logistics category award at the Verdantix EHS Innovation Awards 2019, part of the annual Verdantix EHS Summit Americas.

“I am very proud that the team at LBC has won this award,” said the company’s Group CEO Walter Wattenbergh. “Together with Pro-Sapien we have worked hard to customize this database to improve user accessibility and to ensure that we assess not only the actual outcome of an incident but also the potential severity of an incident. This together with our focus on proactive safety KPIs such as near miss reporting and sustainable safety behavior observations has led to a decrease in our Total Recordable Incident Frequency Rate over the last years.”

East End Chamber Names CAPT Diehl Among 2019 Awards Celebration Finalists

CAPT Bill Diehl, president of the Greater Houston Port Bureau, has been selected as a finalist in the East End Chamber of Commerce’s Awards Celebration for the Male Executive Award. Before coming to the Port Bureau in 2009, Diehl served 31 years in the U.S.C.G. As president of the Port Bureau, Diehl has been instrumental in building a member driven, non-profit trade organization dedicated to promoting commerce and cooperation in the port of Houston maritime industry by providing vessel traffic information, port information, networking and education events, and advocacy. Diehl also helps represent members, the Houston Ship Channel Security District, and the Greater Houston Coffee Association in front of state and federal legislators.

The Awards Celebration will be hosted at the Houston Marriott South at Hobby Airport on November 7.


Fossum Appointed as Superintendent of Texas A&M Maritime Academy

Col Michael E. Fossum ’80 has been appointed to superintendent of the Texas A&M Maritime Academy at Texas A&M at Galveston. The appointment is in addition to his current leadership duties as chief operating officer of that campus and vice president of Texas A&M University. This appointment creates strategic alignment in achieving the goals of the Galveston campus, including enhanced resource management, collaborative learning and student success.

Fossum replaces former superintendent Rear Admiral Michael Rodriguez who will remain as an advisor through October 31 to assist in the transition. Capt. Allan Post, current executive director of Marine Education and Safety Support Operations, has been appointed acting deputy superintendent of the Academy to support Fossum.

The Texas A&M Maritime Academy is one of six state maritime academies in the United States and currently provides education and training to over 425 cadets for Maritime License Option programs, Naval Reserve Officer Training, Strategic Sealife Midshipman program and provides a direct line to the U.S. Coast Guard through the Maritime Academy Graduate Direct Commission Officer program.

Fossum joined Texas A&M following his retirement from the National Aeronautics and Space Administration (NASA) – Johnson Space Center in 2017. He is a veteran of three space flights with more than 194 days in space and more than 48 hours in seven spacewalks during his 19 years as an astronaut. He has logged over 2,000 hours in 35 different aircraft throughout the course of his career. Fossum was commissioned as an officer in the U.S. Air Force in 1980 and earned a Bachelor of Science degree in Mechanical Engineering from Texas A&M University and Master of Science degrees in Systems Engineering and Physical Science from the Air Force Institute of Technology and the University of Houston – Clear Lake, respectively.


Danner’s Relocates to Pasadena

Danner’s, Inc., has moved into their new headquarters at 3551 Pasadena Blvd. in Pasadena, from the east side of Houston where it has operated since 1939, expanding its ability to watch, transport, store and protect. A ribbon-cutting celebration for the new building took place on October 19, 2019. At the groundbreaking celebration last January, Danner’s President Brad Maxcey said the event was a milestone for the company. “We’ve been on the east side for 80 years . . . This is a big move for us,” he said.

The new facility is state-of-the-art, with a new fiber network, servers, and equipment. The building is also equipped with gas generators. “In the event of a storm, we’ll still be open 24-7, no matter what — rain, sleet or snow,” Maxcey said. Situated on four acres, the new location is convenient to major roadways such as Highway 225, Interstate 10, Beltway 8 and Interstate 45. “It’s right in the center of the Ship Channel, which is great for our maritime customers,” Maxcey said. “Companies in need of security around Pasadena will have it right in their own backyard.” The company is able to serve the entire Gulf region with its maritime services — and beyond, for general security needs.


Port of Galveston Joins Green Marine Certification Program

The Port of Galveston is going green with a number of environmental initiatives, including membership in Green Marine, the leading voluntary environmental program for North America’s maritime industry.

“Joining Green Marine will help us identify and implement best practices, manage our environmental initiatives, measure our progress and strive for continuous improvement,” said Rodger E. Rees, port director and CEO. “Sharing new technologies and best practices with other Green Marine members is another benefit that we’ll tap into.”

Rees added that the port will look for opportunities to integrate new sustainability practices like solar power as it implements its new 20-year strategic master plan. The port is seeking Green Marine certification as a standardized process to benchmark and measure progress in its environmental performance.

David Bolduc, Green Marine’s executive director, welcomed its newest member. “We’re pleased to welcome the Port of Galveston and applaud them on their plans to seek Green Marine certification to tangibly demonstrate their commitment to greener practices,” he said. “We hope this inspires other maritime stakeholders to look at what Green Marine has to offer with its step-by-step approach towards achieving greater sustainability.”

The Green Marine environmental certification program addresses key environmental issues through 12 performance indicators that include greenhouse gases, air emissions, spill prevention, waste management, environmental leadership, and community impacts – some applicable to shipping activities, others to landside operations. The certification process is rigorous and transparent with results independently verified every two years. Each company’s individual performance is made public annually.

  • Date November 1, 2019
  • Tags 2019 October