Global Oregon terminal approved for Panamax

Midstream operator Global Partners has received a permit from the US Army Corps of Engineers for a dock modernization project that will allow it to handle Panamax-size vessels at its terminal in Clatskanie, Oregon.

Work to upgrade the dock is expected to begin in the fourth quarter of this year, pending the completion of final design drawings.

The permit is a significant step towards raising the profile of the terminal "as a prime west coast logistic center," said Global chief executive Eric Slifka on an earnings call.

Global is looking to build additional storage, docking space and rail capacity at its Oregon facility, which has 200,000 bl of storage capacity and 12 railcar offloading positions.

Global in 2013 purchased the crude and ethanol facility for $95mn. The terminal was among the earliest players in the west coast crude-by-rail business.

In March, Global agreed to pay the state of Oregon $102,292 to settle claims it violated terms of the permit for its crude-by-rail transloading operations at Clatskanie.

Global also said today that its multiproduct waterborne rail facility in Port Arthur, Texas, remains on track to open in 2017, giving the company access to the significant refining capacity in the Gulf coast, as well as potential export opportunities.

The facility, with its rail access and waterborne capabilities, will be designed to handle multiple products such as crude, ethanol and refined products.

The Port Arthur facility was originally envisioned as a heavy crude rail site. It is expected to have 340,000 bl of initial storage capacity.

Contracts for the terminal have been "refiner-driven," Slifka said. "That seems to be where we're having the heaviest conversations."

emb/tdf

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