Blue Dolphin's Nixon refinery is reaping the Eagle Ford harvest. It's a real estate thing - "Location, Location, Location".
The Nixon Refinery was originally purchased in June of 2006 for $16 million, but Blue Dolphin has been investing to get the plant back to spec after being idled for years.
The refinery began taking Eagle Ford crude early in 2012 and has capacity for 15,000 b/d. As of the third quarter of 2012, Blue Dolphin was running the refinery at about 70% of capacity or 10,500 b/d. The refinery's location in the heart of the Eagle Ford provides local feedstock that doesn't need to be transported hundreds of miles. The plant's inland location also positions it well for getting premium product prices. It's a win-win for Blue Dolphin.
Here are a few more details related to the Nixon Refinery:
- 15,000 b/d of capacity
- 40-48 degree API crude
- Transport in and out is by truck
- The facility is further inland than most Gulf Coast refineries and can get better product prices
- 130,000 bbls of crude storage
- 135,000 bbls of product storage
- 56-acre facility has room for expansion
This isn't Blue Dolphin's only stake in South Texas - Blue Dolphin Purchased An Option to Buy the Ingleside Refinery - Jan 2012. The Deal is still being negotiated, but growing Eagle Ford crude production only makes the refinery more attractive.
You can also read more from an article published by Vicki Vaughn at MySA.com