Liquid Gold at Pin Oak Terminal

Marine Terminal Changes Hands

Just more than a year ago, Pin Oak — a highly anticipated liquid marine terminal — opened with 4 million barrels of fully-leased storage capacity and an operational deep-water ship dock at the Port of South Louisiana. Now, it has sold to MPLX LP, Marathon Petroleum Corporation, for a cool $450 million.

The site, located at mile marker 144.1 on the Mississippi River in Mt. Airy, officially opened in August 2017 after a 14-month construction project responsible for employing hundreds of River Parish residents. The project was reported as completed without incident.

Boasting one dock, a two-bay truck rack and four tanks with a holding capacity of 424,000 barrels of refined products and biofuels, the terminal grew out of support and collaboration between Pin Oaks LLC and the Port of South Louisiana, St. John Parish officials, Louisiana State Government, local residents and contractors, and key investments by Mercuria Energy Group Ltd.

Mike Reed, CEO of Pin Oak Holdings, recently confirmed. “Marathon has taken over all operational controls and all related commercial and development activities at the facility.  As part of the transaction, Pin Oak will retain an economic interest in the facility.”

Pin Oak is a privately held partnership between Dauphine Midstream and Mercuria Energy Group.

 

Submerged Infrastructure

The continued growth of the liquid bulk export terminal is key to the business development plans of the River Regions and the Port of South Louisiana. Now that Marathon has purchased a controlling interest in Pin Oak, Port leadership remains confident in the project that they’ve supported from the beginning.

As the largest tonnage port in the western hemisphere, the Port hosts over 4,500 oceangoing vessels and more than 65,000 barges each year. Five port-owned facilities in St. Charles, St. John the Baptist and St. James parishes have made the Port a “premier sea gateway for U.S. export and import traffic,” according to the PSL website. The partnership with Pin Oak is sure to heighten the Port’s status as a world-class complex for bulk and cargo.

It was the objective of Pin Oak to develop a full-service transportation hub on the Mississippi River, building off of the extensive pipeline infrastructure and global trade. With more than 87 percent of total imports oil and gas, Port of South Louisiana leads the nation as one of the top energy transfer ports.

“With Pin Oak Mt Airy, Pin Oak established a PILOT program with the Port as its sponsor and worked together with other key community stakeholders to forge a successful partnership,” said Reed. “Pin Oak is very grateful to have had the opportunity to work with the Port of South Louisiana in such a tremendous, win-win partnership. We look forward to finding more ways to collaborate again in the near future.”

 

Full Steam Ahead

With permits in hand, growth is in the future for Pin Oak Terminal. The facility has the capability to expand its storage capacity to 10 million barrels and is permitted for construction of a second deep-water ship dock under Marathon leadership.

Marathon operates out of headquarters in Findlay, OH and has a reputation for successful growth-oriented partnerships. Port Director Paul Aucoin said that he is confident in Marathon’s ability to pick up operations smoothly and to continue the partnership initially forged by the Port and Pin Oak.