ReGen III Corp has announced that further to its US Gulf Coast site and logistics letter of intent (LOI) with Oiltanking North America, LLC on July 5, 2021, the company has received a letter of readiness (LOR) from Oiltanking to proceed with storage and logistics assets for a used motor oil re-refinery production facility at the Oiltanking Galveston County Terminal (OTGAL) in Texas City, Texas.
Oiltanking has successfully completed work on the Pre-FEED/Front-end loading (FEL-2) validation and is expecting the final independent report from its engineers, Burns & McDonnell, within the next week.
Oiltanking confirmed there will be no changes to the fees outlined in the LOI. Based upon the preliminary findings, Oiltanking has notified ReGen III of their readiness to proceed to front-end engineering and design on October 18, 2021.
Oiltanking’s FEL-2 pre-feasibility study covered preliminary equipment design and layout in order to develop a cost estimate, a schedule estimate, and to make any critical decisions that will influence the final design of the storage tanks, loading/unloading pipelines, rail and marine loading/unloading facilities and other logistics assets.
Oiltanking will effectively design, construct, operate, and maintain the OT logistics assets to support the re-refinery.
Alongside the progress made with the OT logistics assets engineering, ReGen III and Oiltanking continue to advance rapidly towards finalizing and signing the long-term ground lease and the OTGAL site services agreement.
Dan Withers, director, business development at Oiltanking, said: “We are proud of the progress the teams at ReGen III and Oiltanking have made in developing this infrastructure project which helps pave the way to a more sustainable future.
“As one of the largest independent tank storage providers for gases, chemicals and petroleum products in the world, Oiltanking is successfully active in the engineering, procurement and construction of tank terminals. Our experienced team is working closely together with ReGen III on a tailor-made and cost-effective infrastructure solution for their re-refinery facility at our terminal in Texas City. We look forward to advancing the project as it will provide a much-needed domestic supply of base oils recycled from used motor oil thus, strengthening the circular economy.”
For more information visit www.oiltanking.com
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