The Port of Portland said Sept. 2 that it has an agreement in
place with Pembina Pipeline Corp. to develop a rail-served propane export
facility that could be up and running by early 2018. Pembina plans to construct
and operate the facility on land adjacent to the east end of the port’s marine
Terminal 6 in Rivergate Industrial District.
Private investment is estimated at more than $500 million
dollars; the project represents one of the largest single private capital
investments in the city’s history.
“The city is committed to growing our economy on the land we
already have, and holding industry to very high environmental and public safety
standards,” Portland Mayor Charlie Hales said. “We welcome this investment and
these jobs in Portland. This proposal meets these goals.”
Pembina, based in Calgary, Alberta, is one of Canada’s
leading providers of transportation and logistics for the North American energy
sector; the company has experience in building propane facilities and safely
transporting and storing propane in both Canada and the US.
“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,” Pembina’s President and CEO, Mick
Dilger, said.
The propane export facility is designed to receive about
37,000 barrels of propane daily. It’s anticipated that most of the propane
would be exported to Asian markets, to be utilized for various residential and
industrial purposes.
“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,” Port of Portland Executive Director Bill Wyatt said. “Propane has an
excellent track record as a clean and safe alternative fuel.”
It is estimated that the project would generate between 600
to 800 temporary construction jobs and about 35 to 40 new, permanent positions
to operate the terminal. Additionally, an estimated $3.3 million in annual tax
revenues would go to the City of Portland, $2.4 million to Multnomah County and
$3.1 million to Portland Public Schools annually.
“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.” Wyatt said.
“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.”
