March 10, 2016 [OPIS] - Artemis Liquids LLC, a new name in the LPG export arena, has proposed another propane and butane export facility on the U.S. East Coast, potentially not far from the existing Marcus Hook terminal.
A recent press release unveiled a non-binding open season to gauge interest in Artemis’ NJ Market ConX proposal. Located along the Delaware River, the facility would be designed to receive move 50,000-75,000 b/d of fractionated or refined LPG via rail. The rail receiving facility would accommodate pressurized LPG, and pumping facilities would deliver the LPG to cryogenic storage holding up to 750,000 bbl of product.
Project costs were not disclosed, and representatives for Artemis could not be reached for additional detail or comment.
A map posted on Artemis’ website suggests the site will be located on or near an existing landfill in Paulsboro, N.J. The map shows an area for railcar unloading and transfer, one propane storage tank and one butane storage tank. Two docks are displayed on the map, although only one appears to be connected to the proposed facility.
Paulsboro is home to the PBF Energy refinery of the same name, as well as other operations by large energy players such as ExxonMobil and Sunoco. The town is located approximately 10 miles farther up the Delaware River than Sunoco’s existing Marcus Hook export facility in Pennsylvania.
Bidders may sign up through April 7 for rail and terminal capacity or long-term sales to Artemis at a Mont Belvieu-based index price at the tailgate of their fractionator or pass-through pricing.
Pending open season success and other regulatory approvals, the terminal could begin construction in mid-2017 and be in service by the first half of 2018. The company said it has already begun the permitting process.
The project, as described on Artemis’ website, is designed to give producers in the Marcellus and Utica Shales a cheaper outlet for propane and butane than the U.S. Gulf Coast, where marginal product is currently shipped for export. It would also provide the option to sell into the international market, which can fetch higher product prices than in domestic markets.
“Producers will have access to international spot markets which afford them the opportunity to sell at prices above Mt. Belvieu while retaining the ability to divert rail shipments to premium domestic markets when the opportunity exists,” the company website states.
Artemis is backed by Apollo Global Management, a global alternative investment manager with assets of approximately $161 billion. Its management has helped develop several niche natural gas storage projects, including Bluewater Gas Storage, Pine Prairie Energy Center, Tres Palacios Gas Storage and Leaf River Energy Center.
