Tallgrass Energy and Drexel Hamilton Infrastructure Announce Plans for Plaquemines Liquid Terminal

BATON ROUGE, La. — Tallgrass Energy and Drexel Hamilton Infrastructure Partners have announced plans to build a crude oil export terminal on the Mississippi River in Plaquemines Parish. The proposed Plaquemines Liquids Terminal is permitted for up to 20 million barrels of crude oil storage and could be fully operational by mid-2020.

“Louisiana’s port infrastructure is a vital framework for our economy, and this project will make good use of our export capabilities along the Mississippi River,” Gov. John Bel Edwards said. “Adding a project such as this to our crude oil facilities, our refineries and our growing LNG export network will further strengthen Louisiana’s position as a world energy export leader.”

The project is planned as a public-private partnership, with multiple deepwater docks along the river to be furnished by the Plaquemines Port Harbor & Terminal District. The docking facilities will provide terminal operators with the ability to load and unload larger-capacity vessels now traversing the recently expanded Panama Canal.

“A public-private partnership is the ideal way to develop a project like the proposed Plaquemines Liquids Terminal,” Tallgrass Energy President and CEO David G. Dehaemers Jr. said. “Tallgrass Energy is delighted to have the opportunity to work with the Plaquemines Port Harbor & Terminal District and to contribute positively to the economic health of the parish and the state of Louisiana.”

The terminal would be fed by a pipeline with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing, Oklahoma, to Louisiana. Tallgrass Energy also plans to build an offshore pipeline extension to give the terminal project the added capability of loading very large crude carriers, the largest petroleum tankers currently in use. Project partners estimate the combined pipeline and terminal project will represent a $2.5 billion capital investment. The project is expected to create 35 permanent new direct jobs and at least 1,250 temporary construction jobs.

“Plaquemines Liquids Terminal fits perfectly into our port’s vision to deliver projects that bring quality job opportunities for the residents of Plaquemines Parish,” said Chairman Charlie Burt of the Plaquemines Port. “We are an oil and gas parish and it’s exciting that some of our job losses on the exploration and production side can be replaced by new facilities that store, blend and export crude oil around the world.”

The project has the unanimous support of the port’s board of commissioners, Plaquemines Port Executive Director Sandy Sanders said.

“Our board was quick to offer support because the project fits the model of the port providing the site, and the private partners covering the cost of development,” Sanders said. “PLT is a great fit within the port jurisdiction, which is also home to refineries, and liquefied natural gas and methanol facilities currently being developed.”

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