Jupiter MLP LLC in the RGV

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Jupiter LLC Background

In 2015, Centurion Midstream Group leased 55 acres at the Port of Brownsville for a processing and storage facility. Nothing happened until March of 2017 when Centurion leased an additional 185 acres. In July, 2017, Jupiter bought all of Centurion’s Port of Brownsville assets. Centurion and Jupiter share executives.

Jupiter LLC Project Description at Port of Brownsville

Jupiter Brownsville LLC (Jupiter) has leased a total of about 270 acres at the Port of Brownsville to construct a crude upgrading, processing and export facility.  The processing facility is designed to process 170,000 barrels per day of light U.S. Shale crude into on-spec U.S. gasoline and ultra low sulphur diesel. The proposed condensate upgrader refinery facility will produce approximately 85,200 bpd of ultra-low sulfur gasoline (ULSG) and 61,320 bpd of ultra-low sulfur diesel (ULSD), an additional bottoms product of approximately 12,840 will also be produced. Other petroleum gases such as propane may also be produced. The process will utilize conventional distillation technology and a number of other refinery conversion processes. The facility will also consist of up to 10 million barrels of storage.  

Infrastructure

Storage tanks (27 total)

- six 250,000 barrel Internal Floating Roof (IFR) storage tanks

- twelve 150,000 barrel IFR storage tanks

- nine 100,000 barrel IFR storage tanks.

- Jupiter has received approval for a total storage of 2.5 million barrels of hydrocarbons^[1]

- additional permits on file could increase total storage to 10 million barrels of storage capacity^[2]

Three new marine loading berths

For marine loading of ships, 65,000dwt Panamax sized at 30,000 barrels per hour^[3] and barges. Panamax sized ships are the largest classification of ships allowed through the Panama Canal.

Tank truck loading racks

It is not known as of yet how many trucks will be used to export at the Brownsville facility.

Railcar & loading operations

Juptier anticipates shipping 400,000 barrels per month from Pecos to St. James, Louisiana. The amount shipped could increase, depending on the number of train slots available each month.^[4]

Crude Refining

A 170,000 barrels per day (b/d) processing facility designed to process light US shale crude into on-spec US gasoline and ultralow sulfur/ diesel.^[5] Jupiter MLP anticipates having the capacity to load/unload up to one million barrels of crude/products per day.^[6] The proposed condensate upgrader refinery facility will produce approximately 85,200 bpd of ultra-low sulfur gasoline (ULSG) and 61,320 bpd of ultra-low sulfur diesel (ULSD), an additional bottoms product of approximately 12,840 will also be produced. Other petroleum gasses such as propane may also be produced. The refinery will consist of two flares. 5% of the fuel gas generated will be combusted in the large flare at the east end of the facility.^[7]

Crude trains through our towns

Early numbers indicated 240 train cars ( 2 trains with 120 cars) per day going through communities.  These will likely be DOT 11 tank cars, non-affectionally known as “bomb cars” for their tendency to ignite and explode during rail accidents.

Jupiter plans to ship crude oil on the Union Pacific Railroad through 2019 and potentially into 2020, depending on pipeline construction timelines and capacity availability.  The Company currently anticipates shipping approximately 400,000 barrels per month from Pecos to St James, Louisiana.^[8]

Jupiter Offshore VLCC Project

The very large crude carrier (VLCC) offshore facility is planned to be built 6 miles offshore. VLCC tankers can move more than 2 million barrels of crude oil per load. VLCC tankers ships require 82 feet of draft. As a result, they must be transloaded by smaller tankers in deeper water or serviced via pipelines at offshore terminals. The offshore VLCC project will require permits from the U.S. Army Corps of Engineers and Texas Commission on Environmental Quality.  

Pipeline

Originating in the Permian Basin near Crane and Gardendale/Three Rivers and ending in Brownsville, TX, the Jupiter Pipeline is a 650 mile, 36-in diameter, 500,000 barrels per day, crude oil pipeline. It is expected to be operations by fourth quarter of 2020.

Location:

Air Pollution

Background

On April 4th, 2019 a notice of application and preliminary decision for air quality permits was issued by TCEQ.

Permit numbers:

• Air Quality Permit 147681
• Prevention of Significant Deterioration PSDTX1522
• Greenhouse Gas Prevention of Significant Deterioration GHGPSDTX172

The facility will emit the following air contaminants in a significant amount: carbon monoxide, nitrogen oxides, organic compounds, particulate matter including particulate matter with diameters of 10 microns or less and 2.5 microns or less and sulfur dioxide. In addition, the facility will emit the following air contaminants: Hazardous Air Pollutants (HAPS), hydrogen sulfide and sulfuric acid mist, though

the quantities and impacts of these highly toxic emissions are not addressed.                                        

Jurisdictional Agencies and Permits

Jurisdictional and permitting agencies include TCEQ, USACE, and RRC.

To date, these are the permits approved:

Unlike with the LNG projects, the public will have far less opportunity to be informed and comment on this project. Jupiter is not going through the National Environmental Protection Agency (NEPA) process. This means that most of the public input will be with the rubber stamp agency, Texas Commission on Environmental Quality.