Genesis Energy to spend $125 million in BR on pipeline

Genesis Energy, of Houston, announced Monday the company plans to spend $125 million on a new 18-mile crude oil pipeline connecting its Port Hudson terminal to ExxonMobil Corp.’s Baton Rouge refinery.

The project will create 50 new direct jobs in the area, with an average salary of $80,000 a year, plus benefits, according to a Louisiana economic development department news release. The expansion also will result in an estimated 220 new indirect jobs, along with 45 construction jobs.

The new pipeline will be 20 inches in diameter and will be able to move 350,000 barrels of oil per day, according to Genesis.

In addition to the connection to ExxonMobil’s refinery, Genesis’ new pipeline also could connect to other, much smaller local refineries.

Genesis said it plans to add 200,000 barrels of storage capacity to its Port Hudson terminal. The company can now store 216,000 barrels of crude at the facility.

Adam Knapp, president and CEO of the Baton Rouge Area Chamber, said Genesis’ investment will help further build out the infrastructure of the local refining industry and strengthen the presence of refinery support businesses.

BRAC helped to connect Genesis with ExxonMobil, he said.

“This shows the vitality of the manufacturing sector,” Knapp said. “It pushes the longevity of our refineries to have this infrastructure in place.”

Genesis said it plans to build a new crude oil unit train facility at ExxonMobil’s Baton Rouge Maryland Terminal.

A unit train consists of cars dedicated to moving a single product, in this case crude.

The unit train facility will be able to unload 110 to 140 cars per day, said Jim Harris, a spokesman for Genesis. The amount of oil will vary, but a typical trainload could be 65,000 to 70,000 barrels of oil.

Harris said Genesis will handle shipments from a number of different producers.

Unlike some other rail terminals in the area, Genesis’ capacity will not be dedicated to one or two producers, he said.

Genesis said it also plans to make improvements to the Port Hudson barge dock and truck station.

Construction on the project will begin early this year, and the Port Hudson work and pipeline are expected to be completed by the end of the year. The work at the ExxonMobil terminal is scheduled for completion during the second quarter of 2014.

ExxonMobil’s Baton Rouge refinery is one of the largest in the country, with a daily refining capacity of more than 500,000 barrels.

Genesis employs more than 300 people in Louisiana.

The company’s operations include pipeline and marine transportation for crude oil engineering, design services for refineries and trucking for the petrochemical and oil industries.