Genesis Energy Plans $125 Million Investment To Expand Its Baton Rouge, Louisiana Production Facilities
Louisiana Economic Development said the project will create 50 new direct jobs, with the expansion also resulting in an estimated 220 new indirect jobs, along with 45 construction jobs.
In addition to improvements at the company’s existing terminal in Port Hudson, including barge dock and truck station facilities, Genesis Energy will build approximately 200,000 barrels of storage capacity to accompany its existing 216,000 barrels of storage capacity. The construction of a new 18-mile pipeline will provide the company with the capability to connect the Port Hudson facility to ExxonMobil properties that include the Maryland Terminal north of Baton Rouge, the Anchorage Farm Tank in West Baton Rouge Parish and the ExxonMobil Baton Rouge Refinery, along with other Louisiana refineries.
The pipeline will have an ultimate capacity of about 350,000 barrels of crude oil per day. Genesis Energy has entered into definitive agreements with ExxonMobil in which ExxonMobil will grant Genesis Energy a land lease at the Maryland Terminal site and secure preferential rights for throughput at the facilities.
“With the expansion of our operations in Louisiana, Genesis looks forward to a strong future in the state and an increase in our contribution to the local economy,” Genesis Energy President and Chief Operating Officer Steve Nathanson. “This project positions Genesis as an efficient midstream service provider for crude oil supply and logistics in the region. Genesis is committed to being a good neighbor and will keep the community informed throughout the development of this project. We also intend to hire locally where possible during the construction phase and long-term operations of the facilities.”
Gov. Bobby Jindal said, “This announcement is great news for the Baton Rouge area and our entire state. Louisiana is an energy-rich state, and we’re proud that Genesis is joining the growing list of energy companies that continue to expand in our state because of our world-class energy infrastructure, strong business climate and incomparable workforce. Genesis has been creating growth and opportunity in the Baton Rouge area for years, and we’re proud the company chose to reinvest here so they can continue providing good jobs for our people.”
LED said the company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption incentives.
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