Tuesday, March 10, 2015

PROPOSED PORTLAND PROPANE EXPORT TERMINAL BY CANADA'S PEMBINA MARINE TERMINALS INC.

PROPOSED PORTLAND PROPANE EXPORT TERMINAL

On August 28, 2014, one of Pembina's subsidiaries (Pembina Marine Terminals Inc.) entered into an agreement with the Port of Portland, Oregon for the potential development of the Company's proposed export terminal. The agreement enables Pembina to begin engaging with a broad range of stakeholders including neighborhoods, environmental organizations, regulatory agencies, business and trade associations and municipal, state and federal governments.

Pembina is proposing to construct and operate a propane terminal facility and marine terminal for the export of propane for an expected capital investment is approximately $500 million (U.S.). The facility would receive shipments of propane via rail from Pembina's Redwater fractionation and storage facility north of Edmonton, Alberta. The propane would be unloaded, chilled and stored for up to 15 days in above-ground, refrigerated holding tanks, before being loaded to a propane ship for export to global markets. Pembina expects there could be two-to-three vessel shipments of propane per month.

The potential propane terminal is being designed for a minimum of 25 years of service, with the expectation that it will run beyond that time period. The proposed in-service date, subject to regulatory and environmental permit approvals, is scheduled for the first quarter of 2018.





Project Overview

Pembina Marine Terminals Inc. (“Pembina”), a subsidiary of Pembina Pipeline Corporation (“PPC”), recently entered into an agreement (the “Terminal Agreement”) with the Port of Portland (see news release here). Pembina is proposing to construct and operate a propane terminal facility and marine terminal for the export of propane (the “Project”). The expected capital investment is approximately $500 million (U.S.). 
The Terminal Agreement enables Pembina to begin engaging with a broad range of stakeholders including neighborhoods, environmental organizations, regulatory agencies, business and trade associations and municipal, state and federal governments.

Pembina is proposing to build a rail-served, marine export terminal for the purpose of exporting liquid propane to global markets. The design of the facility would accommodate an average capacity of 37,500 barrels (1.6 million gallons) of liquid propane per day. One train would arrive every second day with propane from Pembina’s Redwater Facility in Alberta. The liquid propane would be unloaded, chilled and stored for an average of 15 days in steel, double-walled, above-ground storage tanks capable of holding 800,000 barrels (33.6 million gallons), before being loaded to an ocean going ship via above-ground facility piping at the existing Berth 607. Pembina estimates there to be two-to-three such ships per month.

The Project is being designed for a minimum of 25 years of service, with the expectation that it will run beyond that time period. The proposed in-service date, subject to regulatory and environmental permit approvals, is scheduled for Q1 2018. The cost of the project, which would be the single largest private investment in Portland’s history, is approximately $500 million (U.S.). Typically, Pembina’s major projects can range from $100 million to over $1 billion in size.

Propane is the only commodity to be shipped from this site. The site will not accommodate handling and shipment of crude oil or liquefied natural gas.

Safety

Our Safety, Environment & Security ("SES") management system is the cornerstone of Pembina's success and is deeply embedded in our corporate culture. We reinforce our commitment to excellence in SES in our daily operations through the development of stringent standards, regular safety meetings, extensive contractor screening, rigorous project inspection, review of potential hazards, and ensuring our operations meet or exceed industry best practices.
The long-term safety and reliability of infrastructure is central to Pembina’s success. A strict focus on safe and reliable operations both lessens the likelihood of incidents and associated expenses, while reducing costs and sustaining our license to operate.


Facility Safety
Pembina is cognizant of the risks and hazards at its facilities during construction and into long-term operations. Safety measures and state-of-the-art equipment for our proposed facility will include:


  • Steel, double-walled tanks (i.e. a tank within a tank, with monitoring of the space in-between)
  • Gas and fire detection equipment
  • Automatic and remote controlled shut-off valves
  • Automated monitoring and control systems
  • Emergency backup generator for safe shutdown and terminal management if power is lost
  • Pressure  and fire relief and flare system
  • 24 hours/day staffed control room
  • 24 hours/day on-site operators
  • Security Management Plan incorporating security practises of the Port of Portland
  • Construction by local, qualified union workers, to all federal and state codes and standards
  • Inspection by third-party experts prior to facility commissioning

  Seismic Standards
Our facility will be designed to meet the most recent seismic standards of the 2012 International Building Code and the 2014 Oregon Structural Specialty Code. Consequently, the facility will be designed to withstand the effects of a magnitude-7 earthquake in the City of Portland or a magnitude-9 earthquake on the coast. This means that post earthquake, the structures would still support gravity load, damage that does occur will not prevent egress for occupants, and the tanks will retain containment capability.


Source: http://www.pembina.com/propaneterminal/