The Port of Portland announced today that Pembina Pipeline Corporation has entered into an agreement 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.
Based in Calgary, Alberta, Pembina is one of Canada’s leading providers of transportation and logistics for the North American energy sector. Pembina is a time-tested operator with extensive experience in building propane facilities and safely transporting and storing propane in Canada and the U.S. The Portland facility would utilize state-of-the-art storage and safety measures.
The Pacific Northwest has been a highly sought after hub for the transport of fossil fuels due to the rapid increase in domestic production of fuels. The Port has previously considered the suitability of its facilities for coal and crude oil.
“This is great news,” said Portland Mayor Charlie Hales. “We welcome this investment and these jobs in Portland. 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. This proposal meets these goals.”
Upon completion, the propane export facility would receive approximately 37,000 barrels of propane per day. It is anticipated that most of the propane would be exported to Asian markets, where the cleaner burning propane will be utilized for various residential and industrial purposes.
“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 Bill Wyatt, executive director for the Port of Portland. “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.”
It is estimated that the project will generate between 600-800 temporary construction jobs and approximately 35 to 40 new, permanent positions to operate the terminal. This employment is valued at approximately $7.2 million in wages and benefits annually. Additionally, an estimated $3.3 million in annual tax revenues would go to the City of Portland, as well as $2.4 million to Multnomah County and $3.1 million to Portland Public Schools annually.