New Orleans’ Empire Pipeline has acquired a crude oil terminal in Gibson from Shell Oil Co. and its subsidiary, Shell Oil Products US.
The terms of the deal were not disclosed. Located in Terrebonne Parish, the Gibson Terminal is on approximately 30 acres and connects to the Intracoastal Waterway.
The terminal contains 300,000 barrels of crude oil tankage for storage or blending services, three docks for barge unloading and loading, and a truck receiving station. The Gibson Terminal handles sweet and sour barrels via the Ship Shoal Pipeline System and Atchafalaya and Magellan pipelines. Offtake from the terminal is substantially directed by pipeline to the St. James Terminal located between New Orleans and Baton Rouge.
Everard W. Marks III, founder of Empire Pipeline, says in a statement that the acquisition marks “an initial expansion into crude oil terminalling” and part of the company’s long-term plans to grow its midstream businesses, including critical oil and gas infrastructure assets. “The terminal’s location and operational capabilities are extremely attractive,” Marks says, “and we look forward to providing additional market optionality for crude oil transport and blending capacity through our planned installation of a bi-directional pipeline connection to the Zydeco Pipeline.”
Previously known as the Houston-to-Houma, or Ho-Ho pipeline, Shell’s Zydeco Pipeline carries crude from the Eagle Ford, Permian Basin and Bakken to Louisiana refiners.
This story first ran in 10/12 Industry Report. To keep up with regional industry news, subscribe to the free 10/12 Weekly e-newsletter.
