Oil terminal getting $365 million expansion
ST. JAMES — NuStar Energy is investing $365 million to expand its St. James Terminal on the Mississippi River, creating 32 direct jobs and an estimated 269 indirect jobs in southeast Louisiana, officials said Tuesday.
The project will increase the tank storage capacity at the oil terminal from 8 million barrels to 11 million barrels and expand the terminal’s ability to offload crude oil from railroad tank cars, officials said.
NuStar began working on elements of the expansion last year and expects to complete the work in 2016, officials said.
The 32 new direct jobs will pay an average of $98,000 a year, which includes an all-employee bonus, plus other benefits, state and NuStar officials said in the news release from Gov. Bobby Jindal’s office.
“This is all great for St. James Parish,” Parish President Timmy Roussel said in the announcement.
“We’re very excited about an expansion such as this. To put in that many more new jobs, it is definitely a life ring for the parish.”
Jindal, Roussel, NuStar Chief Executive Officer Curt Anastasio and other officials marked the capital investment in a ceremony Tuesday at the facility on St. James Parish’s west bank.
“Today’s announcement shows our strong commitment to retaining and growing existing Louisiana companies so we can create more opportunities for our people here at home. NuStar’s investment also reinforces Louisiana’s well-deserved reputation as the energy gateway to North America,” Jindal said in the statement.
Louisiana Economic Development Secretary Stephen Moret said later that substantially all of the project is being funded by Gulf Opportunity Zone bonds.
The pipeline, oil storage and distribution company has received $366.2 million in Go Zone bonds, according to research.
The terminal helped give St. James Parish the third-highest share of Go Zone bonds in Louisiana, along with the $3.4 billion Nucor steel mill and other projects, the research shows.
Overall, NuStar anticipates $505 million in capital improvement projects at the terminal over a five-year period in current, past and future projects, the announcement said.
The St. James Terminal connects though pipelines and shipping modes with major energy companies and has three docks and a maximum draft of 45 feet.
NuStar has 8,417 miles of pipeline, 89 terminals and facilities that hold and distribute crude oil, refined products and specialty liquids, company officials say on their website.
NuStar, a publicly traded Fortune 500 partnership in San Antonio, Texas, saw its share price rise 37 cents by the end of Tuesday to $57.78, according to MSN Money.