Fairway Energy Partners to construct crude oil storage facility

After closing a private equity offering, Fairway Energy Partners, LLC will begin construction of the first phase of the Pierce Junction Crude Oil storage facility.

The company plans to convert three existing underground storage caverns at the Pierce Junction Salt Dome, located in Houston, Texas, into crude oil storage service. Fairway will also build out all of the requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility in commercial service.

Crude oil storage facility phase one

Fairway Energy’s plans are expected to commence by the end of 2016, with the initial phase designed to allow for storage of three segregations of crude oil at a total capacity of approximately 10 million bbls.

Phase one also includes the construction of two separate bi-directional 24 in. pipelines – stretching across approximately 21 miles – that are intended to connect the facility to the existing Houston area crude oil grid. This would add over one million bpd of pipeline receipt and delivery capability in the Houston marketplace.

Fairway will construct brine ponds with approximately 10 million bbls of capacity and central pumping and metering facilities at the site.Upon completion of phase one, the company intends to take the Pierce Junction project to its full capacity – 20 million bbls – in s second phase. Fairway has secured the exclusive right to store crude oil on the Pierce Junction Salt Dome.

Comment from Fairway Energy Partners

"This project will serve the growing crude oil storage needs, driven by the significant delivery of new pipeline-delivered crude oil into and through the Houston market. We're offering a new, low-cost option to the market as a fee for service based provider,” said Fairway’s CEO, Chris Hilgert.

Edited from source by Elizabeth Corner

Read the article online at: https://www.worldpipelines.com/business-news/24072015/fairway-energy-partners-to-construct-crude-oil-storage-facility/