Wednesday, December 17, 2014

Magellan Processing receives EPA permit for Corpus Christi splitter

The US Environmental Protection Agency (EPA) has issued a final greenhouse gas (GHG) Prevention of Significant Deterioration (PSD) construction permit to Magellan Processing, a subsidiary of Magellan Midstream Partners, to build a new condensate splitter plant at the company's existing terminal.

The facility is in Nueces County, in Corpus Christi, Texas.

Magellan will construct a 100,000 bpd natural gas condensate splitter at the Corpus Christi facility.

The project includes two natural gas-fired hot oil heaters, two natural gas-fired fractionator heaters, storage tanks, and other associated equipment.

The company estimates capital costs for the project at around $400-450 million (€320-€360 million).

The project will create around 500 construction jobs and 105 long-term jobs. In June 2010, EPA finalised national GHG regulations, which specify that beginning on 2 January, 2011, projects that substantially increase GHG emissions require an air permit.

Since then, projects in Texas that increase GHG emissions have required an air permit from the EPA. In Texas alone, EPA has received 86 GHG permit applications from businesses since 2011.

Texas is No. 1 in the country for receiving EPA-issued GHG permits – with over 61 permits being issued by EPA. On 31 October, 2014, EPA announced both its approval of the state air plan and the withdrawal of the federal air plan making the Texas Commission on Environmental Quality (TCEQ) the primary GHG permitting authority in Texas.

The approval became effective upon publication in the Federal Register on 10 November.

This action eliminates the need for businesses to seek air permits from two separate regulatory agencies in Texas and moves the permitting program to TCEQ.

EPA and TCEQ will continue to work closely with pending permit applicants during the transition period and ensure no unnecessary project delays result from this action. Read the EPA press release here.

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