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Sunday, July 21, 2019

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LOOP Clovelly Hub to expand crude oil storage

LOOP Clovelly Hub to expand crude oil storage

CLOVELLY, LA - The Louisiana Offshore Oil Port, (LOOP), is adding three new above-ground oil tanks and 1.1 million barrels of storage capacity to its Clovelly Hub, one of the nation's largest oil trading and distribution centers for crude oil.

The project is estimated to cost more than $25 million and is scheduled for completion in late summer 2016.
Once completed, the new tanks will join 15 other crude oil storage tanks now in operation at the Hub and increase Clovelly's above-ground storage to 10.1 million barrels. LOOP also has 60 million barrels of underground storage.

“We are expanding to meet the changing needs of our industry,” said Tom Shaw, President of LOOP LLC, the owner and operator of the Clovelly Hub. “Expanding North American production has made the Clovelly Hub an even more attractive destination for crude producers and shippers demanding high-volume storage and ready access to refiners.”

Several regional Louisiana businesses have been contracted to work on the Clovelly Hub new-tank construction project.

Local engineering firms Morris P Hebert, Wink Engineers and Clement Controls Systems were selected to undertake the design phase of the project. Grand Isle Shipyard and Boh Brothers performed civil earthwork, Hayward Baker has initiated the foundation work and Smith Tank and Steel of Prairieville will perform the fabrication and erection work.

Several other local companies have been contracted to provide support services related to piping, coatings, quality control and electrical services

The Clovelly Hub now receives domestic oil from Texas drilling sites, drilling in the Gulf of Mexico and from the US mid-continent.

“Last year was the first time in 34 years that that we received, stored and distributed more domestic crude oil than foreign,” said Mr. Shaw.

LOOP has safely received and distributed over 12 billion barrels of crude oil to fuel the nation since it began receiving crude oil shipments in 1981. LOOP currently employs a staff of over 200 persons between its operations offshore in the Gulf of Mexico, onshore at the Clovelly Hub, Port Fourchon, St. James, and Covington and is currently the largest privately owned repository for crude oil destined for refineries in the U.S.