Port bond approved
Published 12:00 am Friday, June 20, 2008
The Port of South Louisiana recently approved tax exempt bond financing to assist the developers of a crude oil tank farm planned within its 54-mile district in St. James Parish. The Port is a state agency and has the authority to issue bonds for privately-held projects in its district.
Plains All American Pipeline, L.P. (Plains) will receive federal Go Zone bonds to finance the construction of a riverfront dock, crude oil interchange and tank farm to receive and deliver up to 6.2 million barrels of crude oil per day. The St. James hub will tie into the Louisiana Offshore Oil Port (LOOP), which is the only U.S. port that can receive the carriers to transport this anticipated volume.
Plains reported that the St. James site plays a critical role in balancing the U.S. supply and demand of crude oil.
The company will invest over $200 million in the project, which is anticipated to create 300 construction and eight permanent new full-time jobs.
The Port will also take title to the project and lease it back to Plains for 30 years so the company is eligible for a property tax exemption on the facilities. The lease payments to the Port will be used to pay back the bond debt.
Plains, one of the largest independent midstream crude oil companies in North America, owns and operates approximately 20,000 miles of crude oil and refined product pipelines including 700 miles in Louisiana. It has invested approximately $375 million in its Louisiana operations over the last three years and has utilized Louisiana construction and service companies for these projects.
The Port of South Louisiana, a 54-mile port district on the Mississippi River between New Orleans and Baton Rouge encompassing St. Charles, St. John and St. James parishes, is the largest tonnage port in the Western Hemisphere and accounts for over 50 percent of all Louisiana imports/exports.