US-based Oban Energies, LLC is developing an $4.5-billion oil refinery and oil storage facility located off the southern tip of Grand Bahamas Island, 35 miles east of Freeport, GBI. Oban envisions that the terminal will play a key strategic role as one of only two facilities close to the US Gulf and East Coasts for deep water marine terminal servicing of crude and other products that are unloaded from large tankers at the marine terminal and either stored or loaded onto smaller ships that can access the shallower water berths along the East Coast and the Caribbean.
The government of the Bahamas is embracing the project as providing needed services, employment opportunities and economic growth. Following the lifting of the 40-year crude export ban in December 2015, the US could become a major exporter of light oil providing long term value to Oban.
Location just 90 miles (145 kilometers) from the US Eastern Seaboard, this complex would be suited as a merchant facility for storing and blending liquid products, transshipping and terminal operations for the Arabian Gulf, West African and Northwest European trade to the United States’ East coast and the Gulf coast, as well as for North American trade to Europe, Latin America and the Pacific.
Phase 1 of the project will require a $1.5-billion investment for development, construction, and start up operations. The project will provide storage tankage for crude oils, residual fuel oils, middle and light distillates, specialty vegetable oils and heavy oils, and will consider all other bulk liquid storage requests.
The project will launch with an initial capacity of 4 million barrels, with plans to expand capacity to 20 million barrels by year 4 of facility operation. In addition, Oban Energies will construct a 50,000 barrel per day petroleum refinery, with plans to expand to 250,000 barrels per day by year 4 of the facility operation (Phase 2).