New Orleans’ Empire Pipeline has acquired a crude oil terminal in Gibson from Shell Oil Company and its subsidiary, Shell Oil Products US.
The terms of the deal were not disclosed. Located in Terrebonne Parish, the Gibson Terminal is situated on approximately 30 acres and connected to the Intracoastal Waterway.
The terminal is primarily comprised of 300,000 barrels of crude oil tankage for storage or blending services, three docks for barge unloading and loading, and a truck receiving station. The Gibson Terminal handles sweet and sour barrels via the Ship Shoal Pipeline System, the Atchafalaya Pipeline, and the Magellan Pipeline. Offtake from the terminal is substantially directed by pipeline to the St. James Terminal located between New Orleans and Baton Rouge.
Everard W. Marks III, founder of Empire Pipeline, said in a statement that the acquisition marks “an initial expansion into crude oil terminalling” and part of the company’s long-term plans to grow its midstream businesses, including critical oil and gas infrastructure assets. “The terminal’s location and operational capabilities are extremely attractive,” Marks said, “and we look forward to providing additional market optionality for crude oil transport and blending capacity through our planned installation of a bi-directional pipeline connection to the Zydeco pipeline.”
Previously known as the Houston-to-Houma, or Ho-Ho pipeline, Shell’s Zydeco Pipeline carries crude from the Eagle Ford, Permian Basin and Bakken to Louisiana refiners.