ExxonMobil awarded lease to operate Saint James Marine Terminal

Published on October 30, 2019 by Dave Kovaleski

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ExxonMobil Pipeline Co. was awarded the lease of Strategic Petroleum Reserve’s Saint James Marine Terminal and Bayou Choctaw Pipeline, the U.S. Department of Energy’s Office of Fossil Energy announced.

The 20-year lease agreement will go into effect Jan. 1, 2020. ExxonMobil will be responsible for the operations and maintenance of the facility.

“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,” Secretary of Energy Rick Perry said. “It’s a win-win for producers, refiners, consumers, and taxpayers.”

The St. James terminal is a crude oil marine terminal located about 45 miles west of New Orleans. The facility has two docks on the Mississippi River and six storage tanks with a capacity of 2 million barrels. The Bayou Choctaw 36-Inch Pipeline is a crude oil common carrier that runs 37.2 miles northwest to the DOE Bayou Choctaw facility.

“This lease is a prime example of the private sector and government coming together to help achieve the country’s energy security mission in a collaborative manner,” Under Secretary of Energy Mark Menezes said. “Together, we will continue to maintain and secure the U.S. oil reserves.”

DOE operated the St. James Facility from 1980 to 1997 until it was leased to the Shell Pipeline Co. for a 20-year term expiring December 2017. That original lease was modified to extend the term until Dec. 31, 2019.

“DOE’s Office of Fossil Energy looks forward to working with EMPCo as they help advance the Strategic Petroleum Reserve’s critical mission. We’re glad to continue furthering energy cooperation between the public and private sector,” Assistant Secretary for Fossil Energy Steven Winberg said.