Long Beach Port OKs Pact for New Oil Terminal

The Long Beach Board of Harbor Commissioners on March 8 approved a letter of intent with Vopak Terminals North America, Inc., to study development of a 28-acre site on Pier T as a deep-water terminal for crude oil and petroleum products, including gasoline.

The port’s preliminary agreement with Vopak sets basic deal terms and green-lights an environmental impact study of a "liquid bulk” terminal for petroleum tanker ships. It would be the port’s fourth crude oil terminal and the first to be built in Long Beach since 1983. All relevant environmental, safety and security issues would be reviewed as part of the environmental study.

According to the port, it could take up to four-and-a-half years for a full environmental review and to design, permit and construct the new terminal. If the environmental impact report (EIR) is certified and plans approved, the port would invest about $37 million in dredging and other waterside improvements, and Vopak would spend $120 million for land-side improvements during the first phase of construction.

Preliminary estimates cited by the port indicate the first phase would create nearly 1,200 jobs for the one-and-a-half-year construction period. More refined job estimates will follow as construction plans and schedules are developed for the EIR.

On land, the terminal would be served by nearby pipeline connections to oil and petroleum product distribution facilities and oil refineries.

Vopak is a division of the Rotterdam, Netherlands-based Royal Vopak, which operates 80 liquid bulk marine facilities at ports in 30 countries.

Long Beach’s existing crude oil facilities – BP terminals on Piers T and B and a Tesoro terminal on Pier B – receive a combined total of about 200 million barrels of oil annually. Estimated annual throughput of the future Vopak terminal ranges from 21 million to 55 million barriers.

American Association of Port Authorities
Asociación Americana de Autoridades Portuarias
1201 Maryland Ave SW, Suite 860, Washington, D.C. 20024
E: info@aapa-ports.org
W: www.aapa-ports.org