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Wednesday, November 13, 2019

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Massive oil facility coming to Raceland

Massive oil facility coming to Raceland

Houston-based Genesis Energy has announced plans to begin construction on a new crude oil unit train unloading facility capable of unloading up to two unit trains per day, located in Raceland.

"They're going to run trains into this facility, off-load it into a loop type of facility that they're going to store the crude in and then interject that into a pipeline and transfer that to the oil facilities in other parishes for refining," says Lafourche Parish Administrator Archie Chaisson.

The Raceland Rail Facility will sit on a 60-acre tract and will initially be connected to existing midstream infrastructure that will provide direct pipeline access to both St. James and Baton Rouge area refineries.

In addition, Genesis is in discussions to build pipeline infrastructure for the rail barrels to move south, ultimately providing access to existing infrastructure at Clovelly, LA and connectivity, via existing pipelines, to the vast majority of refineries in Southeastern Louisiana.

The total cost to Genesis of the Raceland Rail Facility project, which includes more than 400,000 barrels of new crude oil storage and pipeline infrastructure, is expected to be less than $75 million.

Construction should begin soon and the company expects its facility to be operational by next summer.

Chaisson expects Genesis to hire 40 to 60 new workers.

"They haven't given us a final number yet since it's still early in the planning stages but it's going to be huge no matter if it's 10," he says. "That's 10 more jobs that we can offer to our constituents."