* New infrastructure to provide access to more cheap inland
* Exxon's Baton Rouge refinery and others could tap into it
* Pipeline, tankage at end 2014, rail offloading 2Q 2014
By Kristen Hays
HOUSTON, Feb 4 Genesis Energy LP will
build a new crude oil pipeline, a rail offloading facility and
expand tankage alongside the Mississippi River to enable more
access to cheap inland crudes for Exxon Mobil Corp's
Louisiana refinery, the company said on Monday.
The Houston-based company said it would spend $125 million
to nearly double capacity at its Port Hudson, Louisiana,
terminal to 416,000 barrels and build a new 18-mile (29 km)
pipeline to move crude south from there to a tank farm at the
502,500 barrels-per-day (bpd) Baton Rouge refinery.
Genesis said it would build the rail offloading facility at
another terminal between Port Hudson and Baton Rouge where the
pipeline will pass through.
Refiners and pipeline companies have launched many similar
projects to gain access to inland U.S. crude so plentiful that
it trades at a sharp discount to other global crudes.
Genesis said the pipeline will have an ultimate capacity of
350,000 barrels per day (bpd) and could deliver crude bound for
refineries other than Exxon.
Genesis chief financial officer Bob Deere said the Baton
Rouge plant's Anchorage tank farm has connections to other
refineries, but he declined to say which plants also would
receive crude from the new infrastructure.
Deere also declined to specify where in the United States
the crude would come from, except to say it "would have the
potential of coming from anywhere where it could be transported
by barge or train."
That could include crude moved south by barge from North
Dakota's Bakken shale play or crude moved by rail and barge from
Ohio's Utica play.
The Port Hudson tankage and new pipeline are expected to be
built by the end of 2013 followed by the offloading facility
completion in the second quarter of 2014, Genesis said.
Exxon's Baton Rouge refinery is the nation's third-largest.