By Dan Wallach
A new oil dock on the east bank of the Sabine-Neches Ship Channel will bring a $75 million investment with the prospect for perhaps another $125 million if enough customers demand it, developers said.
The new dock, being built at the spot where a rusting dry dock sank a couple of years ago alongside Pleasure Island, will allow large tankers to offload crude at any time of day or night, thus making deliveries cheaper and easier.
The marine terminal will receive crude tankers of up to Suezmax class, and will be able to operate without the daylight restrictions imposed on other terminals in the upper Sabine-Neches waterway, a prepared statement from Valero said.
A Suezmax tanker is the largest ship that can carry up to 1 million barrels of oil.
The crude dock, which is scheduled for completion in the fourth quarter of 2013, will deliver crude oil through a new 36-inch pipeline to Valero’s Port Arthur Refinery and will have the flexibility to connect to other local refineries, like Motiva Enterprises, Total Port Arthur Refinery or ExxonMobil.
Bill Scott, chairman and chief executive of Trans-Global Solutions, said the dock could expand if the demand is there. A second phase of development would bring an investment of about $50 million and a third phase would be about $75 million for a total of $200 million.