Agreements & Partnerships: Corpus Christi/Palermo, Kalama, Longview

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In a move to strengthen its Latin American trading ties, Port Corpus Christi on April 7 signed a memorandum of understanding with a Colombian port entity, Palermo Sociedad Portuaria (PSP). The Port of Kalama Commission on April 9 voted to approve a lease agreement with NW Innovation Works (NWIW) to build and operate a manufacturing plant on port property that would produce methanol from natural gas after receiving environmental and regulatory approvals.

Corpus Christi Sister Port MOU with Palermo, Colombia

In a move to strengthen its Latin American trading ties, Port Corpus Christi on April 7 signed a memorandum of understanding with a Colombian port operator, Palermo Sociedad Portuaria (PSP).

In the MOU, the Port Corpus Christi and PSP agree to cooperate in the pursuit of business opportunities by promoting efficient logistical land and sea port linkages for the ultimate purpose of supporting economic growth, job opportunities and port revenues. Per their agreement, the ports may elect to exchange information on marketing, modernization and improvements, training, technological capabilities and environmental systems.

PSP operates a new multipurpose terminal located on the Magdalena River, approximately 35 kilometers/22 miles from the Caribbean Sea. Current facilities include 308 linear meters/1,011 feet of dock, 10 hectares/24 acres of open storage, and three warehouses. River channel depth is approximately 10 meters/33 feet.

"As we continue to develop the infrastructure needed to support the port's diversification of cargo effort, it is important to build strategic business partnerships to facilitate the consolidation of negotiations, and also promote and exchange knowledge to create favorable conditions for transit of goods through both ports," said Judy Hawley, chair of the Corpus Christi Port Commission.

Just last month, month Port Corpus Christi signed a similar agreement with another Colombian port operator, Sociedad Portuaria de Santa Marta (Advisory, March 25, 2014).

MOU signing ceremony in Corpus Christi, April 7, 2014. Seated (from left): Ricardo Roman, General Manager, Sociedad Portuaria de Palermo, with Port Corpus Christi Executive Director John LaRue. Standing (from left): Port Corpus Christi Commissioner Richard Valls; Palermo Energy, Breakbulk and Project Cargo Representative Luis Restrepo; and Port Corpus Christi Commission Vice-Chair Richard Borchard.
Photo/Port Corpus Christi

Kalama Port Commission Approves Lease Agreement with Methanol Manufacturer

The Port of Kalama Commission on April 9 voted to approve a lease agreement with NW Innovation Works (NWIW) to build and operate a manufacturing plant on port property that would produce methanol from natural gas after receiving environmental and regulatory approvals.

The lease agreement provides for a two-year contingency period, allowing the port and company to conduct in depth analyses of environmental, safety and feasibility issues. A 30-year lease for construction and operations would commence once all contingencies have been satisfied,

"This is a landmark opportunity for the port and our community," said Port Commission President Alan Basso. "This facility will create 1,000 jobs during construction and 200 permanent family wage jobs during operations. We’re excited to achieve this milestone. But NW Innovation Works still has more work to do evaluating the site and we’ll be talking with lots of people – city, county, school and fire district officials – and with citizens."

The methanol produced in Kalama will be exported to Asia, including Dalian, China, where it will be used as feedstock to produce olefin, an ingredient in the manufacture of products such as cellphone covers.

The Port of Kalama will construct a new dock as well as a water system for this project. The new dock will be located at Columbia River mile 72, downriver from North Port Wharf, a public dock owned by the port.

The NWIW project will be constructed in two phases, with 5,000 metric tons of methanol per phase, or a total of 10,000 metric tons per day at full build out. The methanol will be shipped to China on tankers. The port is expecting Phase 1 will generate 1.8 million metric tons of cargo annually.

"Our partnership with the Port of Kalama demonstrates that we don’t have to choose between a healthy environment and a thriving economy," said Simon Zhang, CEO of NW Innovation Works. "We can have both. This project has the potential to transform the local economy while working to reduce China’s dependence on coal. We want to thank the governor for his support of a project that is a win for the local economy and the global environment."

Aerial showing site of proposed NW Innovation Works methanol plant. The plant will occupy the large square of vacant space next to the Steelscape, LLC, plant and the "thumb" of sand that extends along the river, just above Kalama’s North Port Wharf.
Photo/Port of Kalama

Longview Eyed as Site for Gas Export Terminal

The Port of Longview announced April 10 it has entered into a one-year option agreement to explore a proposed propane and butane export terminal.

Haven Energy, a subsidiary of Sage Midstream, is proposing an export facility to move propane and butane currently being flared in the Midwest to energy markets around the Pacific Rim. The plan calls for the cargo to be railed to the port from the Dakotas, refrigerated and stored on site before being loaded to vessels for export to Hawaii, Mexico and Asia.

The option agreement allows Haven and the port to evaluate the project. During the option period, the port agrees not to negotiate with any other party interested in locating a similar facility at the port. Further, the port and Haven Energy will negotiate a commercial lease for port property and dock use and submit permit applications that are required for the trans-shipment facility.

"These actions are critical to determine the feasibility of the project," said port CEO Geir-Eilif Kalhagen. "This information derived during the option period, will form the basis for a decision by the port’s governing board of elected commissioners."

The preliminary terminal design concept envisions two tall, doubled-walled storage tanks on a 30-40 acre tract near Berth 4. Unit trains of 100 railcars designed to carry propane and butane would utilize the port’s industrial rail corridor to enter the facility. Haven Energy estimates its terminal at full operation would receive a unit train every day and half and approximately 30 vessels a year.

In Washington State, new developments are subjected to a rigorous evaluation under the State Environmental Policy Act. Through this process, the project is evaluated on potential impacts to the environment, including transportation, public services and environmental health.