LOOP February 2019 Press Release
LOOP announced today that its vessel loading service stands ready to handle increased crude flows from recently announced pipeline open seasons. “With the recent open seasons for both the reversal of Capline and the Swordfish Pipeline, LOOP anticipates, several hundred thousand barrels of U.S. mid-continent crude being delivered into the Clovelly Hub per day. Those systems complement the existing daily domestic volumes received from the Zydeco, Mars and Endymion pipelines.”
“LOOP can utilize its already‐built infrastructure to provide domestic producers and traders unparalleled access to global markets via the Clovelly Hub, one of the most efficient crude loading facilities in the Western Hemisphere and the only port capable of fully loading VLCCs,” said Terry Coleman, President of LOOP LLC. At the same time, LOOP expects use of its facility will reduce inland emissions, reduce fuel consumption and reduce near shore marine traffic congestion risks.
The Swordfish Pipeline will provide marketers access to LOOP’s Clovelly Hub, where they can store, blend and load this new crude volume. The St. James, Louisiana market could see its daily crude receipts increase by over 1 million barrels per day due to the connectivity resulting from the Capline reversal and other completed connections.
“LOOP was constructed in 1981 and the original construction allowed for the capability to reverse the flow of the Main Oil Line to accommodate vessel loading. As it currently exists, the facility has the capacity to offload over 300 vessels per year. However, current projections suggest demand for loading may be about half that number. LOOP is available to meet market demands and, by doing so, expects to reduce safety risks and environmental impacts while making major contributions to our economy and balance of trade,” Coleman said.
The use of existing infrastructure including LOOP’s vessel loading services provides a unique solution to North America’s need to access global markets. LOOP’s already‐built VLCC loading facility is ready to be an integral piece in this logistics chain and the company will begin negotiating contracts for loading services to match completion dates and capacities of these pipeline projects, pending regulatory approvals.
About LOOP LLC
LOOP LLC provides crude oil offloading, loading, transportation, terminalling and storage services. It owns and operates the nation’s only crude oil deepwater port, which includes three single‐point mooring (SPM) buoys in the U.S. Gulf of Mexico, approximately 18 miles offshore of Louisiana. The SPMs can accommodate very large crude carriers, ultra‐large crude carriers, medium‐range Jones Act compliant tankers and floating production, storage and offloading deepwater facility shuttle tankers. LOOP also provides logistics services to pipelines that connect to regional and national pipeline networks and refining facilities. LOOP has more than 72 million barrels of crude oil storage capacity at its Clovelly Hub in Galliano, Louisiana. LOOP is a joint venture of Marathon Petroleum Company LP, as majority owner, Shell Oil Company, Shell Pipeline Company LP, and Valero Terminalling and Distribution Company.