May 2019, Vol. 246, No. 5
Projects
Moda Decision Could Ease Stress of 3 New Pipelines
Moda Midstream is considering building a second berth at its Ingleside, Texas, crude export terminal to accommodate supertankers, the company’s chief executive said.
The expansion to the terminal that loads oil tankers will come as three major pipelines open in the second half of this year, CEO Bo McCall said in an interview with Reuters. Moda is also increasing the facility’s crude storage capacity from 2 million to 12 million barrels.
“When these new pipelines come online, there is going to be close to 3.5 million barrels a day coming into the market,” McCall said. “Demand is very strong and we’re working very fast.”
Moda will decide if it will modify one of its berths to accommodate supertankers within three months. If the plan goes forward, the company could bring the berth into service in about nine months, McCall said.
Moda is also studying the feasibility of building an additional pier with two more berths, McCall said, which would handle other types of tankers. Once the necessary approvals are received, all the berths could go into use within two years.
The expansion could boost the facility’s export capacity to 2 MMbpd from 1.3 MMbpd, McCall added.
McCall said he expects U.S. oil exports to rise sharply after new pipeline projects advanced by Plains All American Pipeline LP, EPIC Crude Pipeline LP and Enbridge Inc start service.
Moda purchased the Ingleside facility from Occidental Petroleum last August. The terminal can partially load very large crude carriers, which have the capacity to carry as much as 2 million barrels of oil. P&GJ
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