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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Environmental Protection Agency (EPA) has denied a permit for the Bluewater Texas Terminal project near Corpus Christi, Texas. After a public comment period on the project's environmental impacts, and a subsequent review, the EPA issued a ruling stating the offshore oil terminal would need to reduce its toxic air pollution by 95%.

The project is a joint venture between Phillips 66 (NYSE:PSX) (Houston, Texas) and Trafigura Group (Singapore), under the company name Bluewater Texas Terminals LLC. The deepwater terminal, which would sit approximately 20 miles offshore east of the Port of Corpus Christi, is designed to load very large crude carriers (VLCC) at a rate of 1.56 million barrels per day (BBL/d), and would be supported by a pair of single-point mooring buoy systems and a 27-mile crude oil pipeline. Subscribers to Industrial Info's Global Market Intelligence (GMI) can see detailed reports on the terminal and pipeline projects, and click here for the terminal's plant profile.

The project would give the port the ability to load VLCCs, which can carry up to 2 million barrels of crude oil, directly at the dock. Under its existing setup, the Port of Corpus Christi can only partly load VLCCs at dock, then have the rest ferried out to them in the Gulf of Mexico in a process known as lightering, according to the Corpus Christi Caller Times.

Regarding the permitting process, the joint venture in May 2019 applied for a Clean Air Act permit, and in November 2020, EPA released a draft air pollution control permit. In January 2021, the Environmental Integrity Project, other environmental groups and community groups wrote the EPA a letter contending the agency should amend the permit, noting it failed to meet EPA regulations.

Last week, the agency asked the company to submit a new proposal. "EPA's regulations require marine vessel loading operations--like the Bluewater port--to reduce toxic air pollution by 95%. The application of this rule will reduce the amount of pollution the Bluewater terminal will emit by a whopping 18,000 tons each year," said Gabriel Clark-Leach, attorney for the Environmental Integrity Project, in a press release following the EPA's permit denial.

The joint venture had yet to issue a statement following the EPA's ruling as of Friday.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
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