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Energy: Kalama, Portland (OR)

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Kalama: NW Innovation Works Methanol Project Moves Forward

Port of Kalama has moved two steps closer to the construction of a two-phase $1.8 billion plant NW Innovation Works (NWIW) is proposing to build at North Port Marine Terminal. The plant will manufacture methanol from natural gas, mainly for export to Asia.

The first step was an agreement with Burlington Northern Santa Fe Railway to sell to the port the two acres of land needed to provide dedicated access to the site.  

Additionally, the port and NWIWI have assembled team of consultants to provide expert advice and technical assistance related to the proposed project:
  • A firm retained by the port and NW Innovation Works under separate contracts to conduct studies and design work needed prior to submitting permit applications to various government agencies.

    The studies and design work are focused on the North Port site and the improvements that will be necessary for construction and operation of the methanol facility, including for a new wharf. The firm expects to complete the studies within 12 months. Studies related to permitting to extend the gas line to the site are separate and will be done by Northwest Pipeline, the firm selected to provide natural gas.

  • A Portland (OR) company will review the project to ensure compliance with local, state and federal health and safety regulations.  
  • A Juneau (AK) firm will be advising the port on issues related to the design of the dock and loading facilities to ensure compliance with U.S. Coast Guard requirements. 
"These two milestones, together with the agreement between NW Innovation and Northwest Pipeline, are key actions that advance the project," said Port Executive Director Mark Wilson. "This project promises a lot of good local jobs and economic benefits, and we’re moving forward with purpose."   

Portland (OR): $500 Million Propane Export Facility Planned by Pembina Pipeline Corp.

Pembina Pipeline Corporation has entered into an agreement with the Port of Portland to develop a rail-served propane export facility that could be up and running by early 2018. Pembina is planning to construct and operate the facility on land adjacent to the east end of the port’s marine Terminal 6 in Rivergate Industrial District. The company’s investment is "conservatively estimated at more than half a billion dollars," according to the port.

Based in Calgary, Alberta, Pembina is one of Canada’s leading providers of transportation and logistics for the North American energy sector with extensive experience in building propane facilities and safely transporting and storing propane in Canada and the United States. The Portland facility would utilize what the port describes as "state-of-the-art storage and safety measures." 

"Signing an agreement with the Port of Portland is a tremendous start to making this project real. It marks the beginning of consulting with government and stakeholders," said Mick Dilger, Pembina’s president and CEO. "Building trust with the communities where we operate is a top priority for Pembina. Over the last 60 years, we've developed a reputation for honesty, transparency and treating our stakeholders with respect."

Upon completion, the propane export facility would receive approximately 37,000 barrels of propane daily, most of it for export to Asia for residential and industrial consumption.

"We have been extremely discerning when considering recent energy sector cargo opportunities, and after saying ‘no’ to coal and ‘not now’ to crude by rail, we are confident that we are saying ‘yes’ to the right partner at the right time," said Port Executive Director Bill Wyatt. "Propane has an excellent track record as a clean and safe alternative fuel, and I am impressed by the level of experience, expertise and commitment to safety that Pembina brings to the table."

The port estimates the project would create 600 to 800 temporary construction jobs and approximately 35 to 40 permanent positions. Among the expected economic spinoffs are annual wages and benefits amounting to $7.2 million and municipal, county, and school tax revenues totaling $8.8 million.

"It is not an overstatement to say this would be transformative not only for the port’s bottom line, but for the significant influx of city, county and state tax revenue supporting our region." said Mr. Wyatt. "We already handle exports of potash and wheat from Canada, and we’re excited to serve as the gateway for this new cargo type from our neighbors to the north."
 

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