Tuesday 29 October 2019

ExxonMobil granted US Strategic Petroleum Reverse lease

ExxonMobil has been awarded the US Strategic Petroleum Reserve's new lease that will enable the company to distribute government-owned crude oil to the Gulf coast and Midwest refiners.

The Department of Energy said ExxonMobil Pipeline Company (EMPCo) has signed a 20-year lease to operate the St James Marine terminal and Bayou Choctaw 36-inch Pipeline (St James Facility).

The St James facility is a crude oil terminal located around 45 miles west of New Orleans and comprises of two marine docks on the Mississippi River and six storage tanks with a combined storage capacity of two million barrels.

The Bayou Choctaw pipeline operates as a crude oil common carrier that runs 37.2 miles northwest to the DOE Bayou Choctaw facility.

EMPCo will make monthly lease payments, be responsible for operations and maintenance of the facility and provide use of the facility in support of government emergency oil drawdowns.

Energy Secretary Rick Perry said: “This lease helps ensure the free flow of crude oil in the Gulf region so we may continue to strive for energy independence and embrace America’s energy renaissance. It’s a win-win for producers, refiners, consumers and taxpayers.”