By Kristen Hays
HOUSTON, April 29 (Reuters) - Colonial Pipeline Co said onFriday it would build an export dock in southeast Texas, markingthe largest U.S. refined product pipeline system's first forayinto infrastructure that will connect shippers to internationalmarkets.
The company said that it will build a new dock and storagetanks in Port Arthur, Texas - home to three major refineries -to help boost gasoline and diesel exports. Colonial expects tofinish the project, which will accommodate Panamax-sizedvessels, by the spring of 2017.
Colonial has a barge dock at its storagefacilities in Baton Rouge, Louisiana, but the Port Arthurproject will be its first able to handle export vessels.
"There will be another way for our customers to compete inadditional markets via Colonial," Chief Executive Tim Felt saidin a statement.
Nearly a year ago, Colonial took its first step toward theproject when the company bought Royal Dutch Shell's 3.2million-barrel interest in the 4 million-barrel Port ArthurProducts Station, or PAPS, refined products storage terminal.Valero Energy Corp owns the remaining interest.
The terminal serves Motiva Enterprises' 603,000 barrels perday (bpd) Port Arthur refinery, the country's largest, as wellas Valero's nearby 335,000 bpd plant and Total SA's 225,500 bpd refinery.
The dock and new tanks will give the Port Arthur refinersanother avenue to export gasoline and distillates. Motiva'splant, for example, can export up to 100,000 bpd, but could useColonial's terminal to export more, traders said.
At least initially, however, other refiners west of PortArthur will not have access via Colonial to the dock.
Gasoline and distillates stored at PAPS can flow intoColonial's 5,500-mile (8,851 km) system that links the U.S. GulfCoast to the Northeast. Fuels cannot flow from Colonial to PAPS.
Company spokesman Steve Baker declined to say whetherColonial was planning further work to open flows from thepipeline to the terminal. That would allow refiners in Houston,Texas City and Pasadena to ship barrels to Port Arthur forexport as well. (Reporting by Kristen Hays, editing by G Crosse)