SGR Energy announced plans Wednesday to export more than 3 million barrels of crude oil through the Calhoun Port Authority by the end of of 2020 – a volume the Houston-based company expects to double by 2021.
The refined products and crude oil blending and distribution company is already loading 160,000 barrels of crude to a vessel at the port, and has another ship scheduled to dock in about two weeks, said Craig Hicks, senior vice president of investor relations for SGR Energy.
The company expects to invest about $70 million to $80 million in the port as a result of the operation, which will also bring job opportunities to the region, he said.
About four or five full-time truck driving and operator jobs have already been added, but Hicks said the area can expect to see that grow “significantly” as SGR Energy moves forward with volume expansion and construction of a 40- to 50-mile pipeline from a terminal at the Port of Victoria to Point Comfort.
The company is currently barging crude oil from a terminal at the Port of Victoria to Point Comfort and off-loading that oil from the barge and onto a ship for export, he said.
“It would be cost saving for us in the long run to build a pipeline instead of having to run the barge operation,” he said. “If we could start construction by mid-summer, we will.”
Workers would be needed to not only construct the pipeline, but also to expand the terminal SGR Energy is currently leasing space in, and plans to purchase, he said.
Terminal space and availability were key factors in selecting the Calhoun Port Authority for the operation, which will add more than $270 million in annual revenue to SGR Energy next year, Hicks said.