Gulf Coast Giants

GULF COAST

GULF COAST GIANTS

GIANTS SUMMER 2018

Engineering Field Service ASME Repairs

FREEPORT LNG SHIFTS WITH THE MARKET

Shop Fabrication Bundle Extraction Maintenance

Chem Fabrication LLC 911 Brazosport Blvd. S. Clute, Texas 77531

Tel.: (979) 265-6600 info@chemfab.net ChemFab.net

SINCE 2003

SUMMER 2018

B31.3 piping

TAXPAYERS SUPPORT DEEPER PORT

SUPER SAILORS BRAZOS PILOTS COMBINE KNOWLEDGE, SKILL TO GUIDE CARGO SHIPS THROUGH PORT’S WATERS

www.southernservices.org Acoustic Emission Screening Aerial Inspection Services • Drone deployed Remote Visual Inspections • Drone deployed Thermographic Inspections

Alignment Services

CUI Inspection Services Laser Scanning

Creaform Corrosion/Pit Mapping

Inspection Services FAA Certified Drones & Pilots • External • Internal • 510 • 653 • 570

Alloy Sorting Crack Detection Non-conductive Coatings Remote Field Testing Tube Inspection

Submersible Inspections

• Laser Alignment • Optical Alignment

API Inspection Services

Eddy Current Testing

Leak Testing Liquid Penetrant Testing Magnetic Particle Testing Neutron Backscatter Moisture Detection

Positive Material Identification Radiographic Inspection CR & DR Gamma & X-ray

Ultrasonic Inspection B-Scan Corrosion Mapping Guided Wave Testing Phased Array Testing Shear Wave Testing Thickness Testing

Sparkling Clear Industries, Inc. (SCI), with offices in Houston and Clute, has the distribution rights in Central/ South Texas for the Fluid Engineering (FE) line of strainers as well as the TM Filtration line of Gas Coalescing Filters.

FE strainers, which are used in many liquid applications to filter out coarse particles (>50 micron), can be supplied in many different configurations from a simple inline cone strainer to a custom engineered automatic self-cleaning strainer fabricated from exotic metals such as Hastelloy C276 or 2507 Super Duplex Stainless Steel (Zeron 100). The Fluid Engineering automatic self-cleaning strainers have the most effective and efficient cleaning cycle of ANY strainer manufacturer in the industry. With the exception of some of their cast components, all of their strainers are manufactured to their customer’s specifications in the United States. This includes not only the strainers but the skids, control panels and any special requirements such as rubber lining or specialty coatings. Strainers fabricated to conform to the ASME code are also available.

TM Filtration’s Gas Flow Membrane technology gives natural gas producers an improved way to block unwanted carryover associated with wetter unconventional gas sources such as shale and biogas. Due to the pleated construction the element has up to 20 times the filtration area of traditional filter elements. The water stays on the outside of the element and only dry gas passes through on the way to the discharge from the filter.

The net result of this advanced design is cleaner gas streams at reduced operational costs.

Vibration Analysis Visual Inspection

Virtually every storm drain located on the grounds of refineries, petrochemical plants and ancillary facilities have the potential to carry hydrocarbons (oil, grease, etc.) as well as other pollutants into area streams, creeks, lakes and other parts of the watershed. In the State of Texas the water quality in the watersheds is monitored by the Texas Commission on Environmental Quality (TCEQ).

SCI has a customer who contacted us looking to upgrade their carbon filter system that was used to capture hydrocarbons. The facility is a fuel transfer location and they wanted to ensure any hydrocarbons were removed from collected rainwater on the site. They had been using 55 gallon drums of carbon to filter the rainwater. While effective, it was a very manual, cumbersome system.

Nelson Perrin - Business Development (c) 979-709-5001 Ruben Rojas - V.P. Administration 979-265-3342 Todd Guenther - V.P. Technologies 979-265-3342

All Of Your Asset Management Solutions

In response to their request, SCI provided an automatic, four-vessel, two-train system that completely removes the hydrocarbons from the stormwater. Since the SCI system was installed, operator involvement and the headaches of ensuring clean water have been virtually eliminated.

If pollutants in the stormwater runoff are creating headaches for you, call us today and we will develop a system that suits your situation.

Call our Houston office at 713-956-8900 or our Clute office at 979-265-6555 to schedule a technical presentation of the unique features and benefits of these product lines. You can also visit us on our website at www.sparklingclear.com.

Proudly Serving Southeast Texas Since 1985 WWW.ASBESTOSHEALTHLINE.COM • FACEBOOK.COM/ASBESTOSHEALTHLINE

Sparkling Clear Industries, Inc. (SCI), with offices in Houston and Clute, has the distribution rights in Central/ South Texas for the Fluid Engineering (FE) line of strainers as well as the TM Filtration line of Gas Coalescing Filters.

FE strainers, which are used in many liquid applications to filter out coarse particles (>50 micron), can be supplied in many different configurations from a simple inline cone strainer to a custom engineered automatic self-cleaning strainer fabricated from exotic metals such as Hastelloy C276 or 2507 Super Duplex Stainless Steel (Zeron 100). The Fluid Engineering automatic self-cleaning strainers have the most effective and efficient cleaning cycle of ANY strainer manufacturer in the industry. With the exception of some of their cast components, all of their strainers are manufactured to their customer’s specifications in the United States. This includes not only the strainers but the skids, control panels and any special requirements such as rubber lining or specialty coatings. Strainers fabricated to conform to the ASME code are also available.

TM Filtration’s Gas Flow Membrane technology gives natural gas producers an improved way to block unwanted carryover associated with wetter unconventional gas sources such as shale and biogas. Due to the pleated construction the element has up to 20 times the filtration area of traditional filter elements. The water stays on the outside of the element and only dry gas passes through on the way to the discharge from the filter.

The net result of this advanced design is cleaner gas streams at reduced operational costs.

Virtually every storm drain located on the grounds of refineries, petrochemical plants and ancillary facilities have the potential to carry hydrocarbons (oil, grease, etc.) as well as other pollutants into area streams, creeks, lakes and other parts of the watershed. In the State of Texas the water quality in the watersheds is monitored by the Texas Commission on Environmental Quality (TCEQ).

SCI has a customer who contacted us looking to upgrade their carbon filter system that was used to capture hydrocarbons. The facility is a fuel transfer location and they wanted to ensure any hydrocarbons were removed from collected rainwater on the site. They had been using 55 gallon drums of carbon to filter the rainwater. While effective, it was a very manual, cumbersome system.

In response to their request, SCI provided an automatic, four-vessel, two-train system that completely removes the hydrocarbons from the stormwater. Since the SCI system was installed, operator involvement and the headaches of ensuring clean water have been virtually eliminated.

If pollutants in the stormwater runoff are creating headaches for you, call us today and we will develop a system that suits your situation.

Call our Houston office at 713-956-8900 or our Clute office at 979-265-6555 to schedule a technical presentation of the unique features and benefits of these product lines. You can also visit us on our website at www.sparklingclear.com.

Proudly Serving Southeast Texas Since 1985

START UP

Klark Byrd Editor, Gulf Coast Giants

klark.byrd@thefacts.com

Responsive strategies produce great results in growing economy

I

As Port Freeport CEO and Executive Director Phyllis Saathoff told attendees of various luncheons and events, the harbor channel must be widened and deepened to accommodate vessels of increasing size — some of which are already calling.

She also said the bond issue likely would come without an increase in the port’s 4-cent tax rate. That’s possible because of expiring tax abatements and the port’s shifting of two of those pennies from maintenance and operations to debt service.

The strategy paid off — 60.9 percent of voters in May threw their support behind the bond issue.

In Freeport LNG’s case, shifting market demands required swift changes to the company’s business strategy. With a sizeable investment, Freeport LNG is expanding its capability as an import and regasification terminal to include the liquefaction and exporting of natural gas. As a result, company officials say their project is the largest infrastructural process in Texas by dollar value.

I can’t wrap this up without a shout out to the Brazosport Pilots Association. These brave souls risk life and limb in the Gulf to secure safe passage of cargo ships moving through the tricky bends of the port. The strategy here again is straightforward — combine knowledge and skill to get the job done.

When it comes to business, strategy is the difference between make or break. As you’ll see in this month’s edition, great strategies produce favorable results. That’s a plus for all of us.

f someone asked me to sum up this edition of Gulf Coast Giants, I would do it with just one word — strategy.

From Port Freeport’s campaign to drum up voter support for a $130 million bond issue (page 28) to Freeport LNG’s swift shift to accommodate market demands (page 8) to the Brazosport Pilots ensuring the safety of those bringing cargo into and out of the port (page 20), it all involves strategy.

The strategy for gaining voter approval to cover Port Freeport’s financial responsibility for widening and deepening the Freeport Harbor Channel was pretty straightforward — remind voters of the port’s economic impact, tell them why the work is needed and be up front with them about the costs.

The port’s economic impact in Brazoria County is significant.

Here’s just a few of the numbers: 16,400 local direct jobs, $1.5 billion in direct personal income generated and $522 million in annual tax impacts economy wide.

Klark Byrd 4

GULF COAST GIANTS

SUMMER 2018

018

INSIDEGIANTS 28

Gateway to the Future 40

Andrew Liveris

The former chairman and CEO of The Dow Chemical Co. looks back at his decade of leadership that put the company at the center of global conversations.

Cargo ships are getting larger and require deeper ports, so Port Freeport sought taxpayer support to put it on track to be the deepest port in Texas.

20

Brazos Pilots

When large ships call on Port Freeport, their captains are met by the Brazos Pilots. Their experience and deep knowledge of the port ensures safe passage and delivery of cargo. The occupation is not for the faint of heart — one wrong turn of the wheel spells certain disaster.

8

Freeport LNG expansion

In response to liquefied natural gas market shifts, Freeport LNG is expanding its operation on Quintana Island. Three trains are expected to help the company export 15 metric tonnes per annum of liquefied natural gas.

ON THECOVER PHOTO BY BARCLAY FERNANDEZ

From left, Brazoria Deputy Pilot Ross Coviello, Branch Pilot Daniel Blanton and Deputy Pilot Sean Kelly pose for a photo inside their boat. They are members of the Brazos Pilot Association, which is charged with safely seeing cargo ships through Port Freeport’s waters.

GCGIANTS@THEFACTS.COM

DIVISIONS Safety ..........................................................16 Community ................................................39 People Powered ........................................ 44

Gulf Coast Giants is produced quarterly

by The Facts, a division of Southern Newspapers, 720 S. Main St., Clute, TX 77531.

Email us: GCGiants@thefacts.com Call us: 979-237-0148 COVERING BRAZORIA COUNTY ★ WHERE TEXAS BEGAN

GIANTSSTAFF

Publisher: Yvonne Mintz Editor: Klark Byrd Writers: Erinn Callahan, Maddy McCarty, Mary

Newport

Photographer: Barclay Fernandez Advertising Director:

Cindy Cornette 979-237-0122 or retail@thefacts.com.

Vol. 3, No. 3 • Copyright 2018

No portion may be reproduced in whole or in part by any means without written permission of the publisher.

GULF COAST GIANTS

5

w

6

GULF COAST GIANTS

SUMMER 2018

018

Making Sawdust Indoor & Outdoor Furniture

www.ezeturn.com

20 Years Local Experience!

Call For Appointment

Custom Cabinets

979-299-9219 Craig Cyr, Owner

ALLSIDES INSPECTIONS @outlook.com

Windstorm Inspections Structural Foundation Reports Home Warranty - RWC Inspections Third Party Inspections Bank - Lender Inspections Office: 979-265-5887 Cell: 979-482-7073 Fax: 979-265-5860 Physical: 122 West Way, Suite 408 Lake Jackson, TX 77566 Mailing: 5265-10 CR 469 Brazoria, TX 77422 Tom Allen, owner

GCGIANTS@THEFACTS.COM

Visit us to get the best ride for work and play! *New Hours*

Tue.-Fri. 9am-6pm Sat. 9am-1pm

979-798-7547

www.brazosmotorsports.com GULF COAST GIANTS

7

8

GULF COAST GIANTS

SUMMER 2018

018

EXTENSIVE TRAINING

FREEPORT LNG EXPANSION GETS BIGGER, MORE EXPENSIVE GCGIANTS@THEFACTS.COM

STORY BY MADDY McCARTY

LNG Development, L.P. photo GULFFreeport COAST GIANTS 9

ENERGY

F

reeport LNG’s threeyear, $14 billion expansion is getting bigger, longer and more expensive. But by the company’s estimations, the rewards will be tremendous.

Construction on three new processing units, commonly known as trains because of their locomotive-like appearance, to liquefy then export natural gas internationally began in November 2014.

Once running, the output of Freeport LNG’s three trains should be enough to power a metropolitan area the size of San Antonio for a day, according to the company’s website. That’s about 2 billion cubic feet of natural gas liquefied daily, making Freeport LNG the largest natural gas producer in Texas.

In another absolute, officials have called the liquefaction project the largest infrastructural process in Texas by dollar value.

TIMELINE

The trains have been a long time coming.

Freeport LNG in late 2013 began buying properties and homes on Quintana Island at fair market value or offering $25,000 to those who wanted to stay yet felt inconvenienced by the construction. Factoring that time into the equation, the company is almost five years deep into its plans to expand Freeport LNG into the state’s largest natural gas producer.

Years before, however, LNG founders envisioned an import facility to receive natural gas from ships arriving in Freeport. When

10

GULF COAST GIANTS

FREEPORT LNG’S QUINTANA FACILITY An aerial view of Freeport LNG’s tanks, process area and VE tower on Quintana Island.

market conditions completely shifted, causing natural gas prices to plummet in the U.S., Freeport LNG set its sights on exporting.

Behind the change was domestic discoveries of natural gas in shale rock. Drillers were able to reach the gas through hydraulic fracturing, or “fracking,” the use of which began steadily rising in 2007, according to the U.S. Energy Information Administration.

Instead of seeing the reversal of needs as an obstacle to business, Freeport LNG officials saw it as an opportunity to become an exporting facility, according to the company’s website.

In 2014, the company went from planning to action.

Freeport LNG received authorization from the U.S. Department of Energy to export to non-freetrade-agreement countries around the same time the Federal Energy Regulatory Commission gave them final authorization to begin construction. Work on the first train began in November 2014.

Freeport LNG Development L.P. photo

FREEPORT LNG: A BRIEF HISTORY Freeport LNG Development L.P. was founded in 2002 to design, build and operate an LNG import and regasification terminal. When the facility was completed in June 2008, it featured two 160,000 cubic-meter LNG storage tanks, an LNG vaporization system capable of delivering over 2 billion cubic feet of gas a day into the domestic pipeline grid and a marine dock that could accommodate the largest LNG tankers in service. As part of the regasification system, Freeport LNG developed the environmentally friendly VE air tower that extracted heat from the air instead of burning natural gas for LNG regasification.

Today, natural gas resource estimates by the U.S. Department Of Energy’s Energy Information Administration and private analysts indicate the U.S. has sufficient natural gas supplies for more than 100 years. By 2010, it was obvious the U.S. gas market itself should become a source for LNG exports, without the danger of significantly impacting the price or availability of natural gas supplies to U.S. consumers. That was the year Freeport LNG launched its natural gas liquefaction and LNG export project.

SOURCE: freeportlng.com

SUMMER 2018

on ted

“Safe Quality Service”

Industrial Construction Services, Inc. I.C.S. is a family owned and operated organization.

Maintenance

Turnarounds

Projects

Fabrication

Industrial Construction Services is dedicated to working with each customer individually to provide the best value added solutions utilizing our multitude of services across maintenance, turnaround and project applications to achieve the highest level of customer satisfaction without compromising our commitment to excellence in safety performance.

2802 FM 523 I Freeport, TX 77541 I 979.233.8144 I www.icsgeneralcontractors.com

“If It’s Essential, Call”...

ng o

st

Business Essentials, LLC has over 40 years experience in the welding, petroleum, and chemical industries.

We are plugged in and if we can’t supply your needs we know someone who can.

he NG

s rgy

ce

S. LNG d

g.com

018

Family owned and operated company where our customers come first and stay first.

We’ve listed just a few of the products we can help you with: • Pipe & Pipe Fittings • Valves • Gaskets • Hoses & Assembly • Other Specialty Items & Services - Berms & Berm Repair - Truck Tarp Installation - Pipe Supports & Wearpads - Safety Gear & Equipment - Hot Shot Service

We Also Make Hydraulic Hoses We are ready to get you plugged in!

Business Essentials, LLC

1023 N. Brazosport Blvd., Richwood, TX 77531 979-529-9268 www.b-eindustrial.com GCGIANTS@THEFACTS.COM

RL 10024500

GULF COAST GIANTS

11

ENERGY

“Despite an abrupt market turn, our ... business model allowed us to maintain economic stability while many in the industry struggled.”

Mark Mallet, senior vice president of operations and projects, really considered the project “full speed ahead” when financing for Train 3 was fully financed in April 2015. At the time, Train 3 was considered the “third and final” natural gas liquefaction train and the company set up preliminary agreements with companies to sell the totality of the facility’s capacity.

Freeport LNG announced the project would add more than 160 permanent jobs in Quintana, along with as many as 30,000 jobs throughout the nation. During construction, there would be more than 3,500 jobs in Brazoria County, according to the company.

CHANGING THE TIMELINE

A few months later, however, Freeport LNG announced its plans for a fourth train, with construction to begin in 2016 and commercialization in 2020.

Freeport LNG submitted its application to the Federal Energy Regulatory Commission in June 2017. The application has yet to be approved.

12

GULF COAST GIANTS

LOADING AND UNLOADING The Excelsior is seen at berth at Freeport LNG’s Quintana Island facility.

“We are hoping we will have it by the end of 2018, but that’s up to FERC,” Freeport LNG spokeswoman Wendy Mazurkiewicz said.

“Train 4 will create thousands of additional jobs and result in billions of dollars in economic benefits for the U.S.,” the Freeport LNG website states.

Train 1’s in-service was originally scheduled for September of this year, but delays from Hurricane Harvey pushed back the commercial start date to September 2019, according to an April 18 S&P Global Platts article.

The delay is attributed to flooding of lay-yards, where equipment such as steel piping was stored, during the storm, S&P Global Platts reported.

The train site on Quintana Island is on higher ground, according to the article.

All three of these trains should be operating by the end of 2020, Mazurkiewicz said.

Freeport LNG Development L.P. photo

TRAIN PROJECT EXPECTATIONS After its completion in 2019, Freeport LNG’s three-train facility will produce and export some 15 metric tonnes per annum of liquified natural gas, with production units starting sequentially between the fourth quarter of 2019 (Train 1) and third quarter of 2020 (Train 3).

In the meantime, Freeport LNG is planning to add a fourth liquefaction unit to the three already under construction. This expansion will allow for the export of an additional 5 million tons of liquified natural gas per year, increasing the total export capability of the project to more than 20 metric tonnes per annum of LNG. The project is about 70 percent complete on all three trains but just under 50 percent complete in terms of the construction.

Neither the liquefication facility or pretreatment facility construction sites were materially impacted by Harvey. The engineering, procurement and construction contractor’s off-site lay-down yard and a pipe fabrication yard experienced flooding following the storm, and Freeport LNG is working closely with the contractor to come up with the most efficient and effective way to get back on schedule.

SOURCE: freeportlng.com

SUMMER 2018

- CCD, FFS, IOW, Damage Mechanism Review - Materials & Corrosion Engineering - Professional Engineering - Inspection Planning - PSM & MI Services

- Conventional RT - Computed / Digital RT - Conventional NDE - Film Digitizing

nes

it to his n ural t

plete cent

e tion a ng s come way

g.com

018

- Visual Services (API, RVI, CWI, NACE, etc.)

- Advanced NDE (PAUT,TOFD, UTSW, AUT, Tubular Inspection, Surface Eddy Current) - Project & Turnaround Services - QA/QC Services - Vendor Surveillance - PMI 1265 Butler Road • League City, TX 77573

Phone 281-922-0200 • Fax 281- 925-7018 info@pro-surve.com • estimate@pro-surve.com www.pro-surve.com

“… because we said that we would.”

- Guided Wave - EMAT - Pigging Inspection - Pipeline Integrity Services

ENERGY Before the natural gas enters the liquefaction facility, it is pretreated to remove condensate in a facility a mile away in Oyster Creek, according to Freeport LNG’s website.

The pretreatment facility removes mercury, water, hydrocarbons and other elements that the liquefaction equipment can’t handle, the website states. The stripped materials then travel to a storage and trucking facility, where customers can purchase it “for a variety of process uses, and they can ship it from the STF by tank truck.”

The two facilities and the product-loading area’s construction is complete after U.S. Department of Transportation and air permitting, according to the website. Freeport LNG also worked with neighbors of the storage facility to accommodate their needs, the website states, so the facilities are ready and waiting for at least three trains to start rolling in 2020.

RISKS

Reported health and environmental concerns regarding fracking might lead some to believe Freeport LNG’s investment could come crashing down.

Since the market has shifted abruptly in the past, flipping Freeport LNG from an import to an export facility, Houston Public Media questioned whether the industry could get it completely wrong again. But Freeport LNG has shown no fear.

“Despite an abrupt market turn, our entrepreneurial, yet conservative business model allowed us to maintain economic stability while many in the industry struggled,” Freeport LNG’s website states.

The company has its 20-year tolling agreements, promising

14

GULF COAST GIANTS

VE TOWER Freeport LNG’s Quintana Island facility includes a VE tower, which pulls heat from the air instead of burning natural gas for liquefied natural gas regasifaction.

Brazoria County some economic benefit for decades into the future.

Whether these companies use the capacity, they will pay for it, Freeport LNG President Sig Cornelius told Houston Public Media.

Most of the agreements come from Asia, with the company having mentioned Chinese and Japanese customers.

Demand isn’t the only market condition that can change, as President Donald Trump’s tariffs on steel and aluminum from other countries, except Canada and Mexico, could vastly increase Freeport LNG’s future construction costs, Cornelius told Houston Public Media.

That could be one of the “unintended consequences” House Speaker Paul Ryan referenced in March, NPR reported following Trump’s formal orders.

But for now, the construction and vision is secure.

Freeport LNG Development L.P. photo

CAREER & TECHNICAL EDUCATION In the Brazosport ISD, vocational education has expanded to include industry and manufacturing courses in welding, machining and process technology. At Brazoswood High School, one of the departments is now called “Career and Technical Education,” or CTE. The greatest demand was in welding.

Brazoria County businesses found themselves in need of qualified welders for projects like expanding and upgrading facilities, or, in Freeport LNG’s case, building a new facility from the ground up.

The CTE Center at Brazoswood already had two small welding labs, but they were in need of renovation and better equipment.

Although the school received some funds from a 2014 county bond election, they fell short of what was needed for the envisioned upgrade. That’s when Freeport LNG donated $265,000.

SUMMER 2018

stry

.

ng

up. had n nt.

ion, r the port

018

SAFETY

STATUS REPORT

CONSTRUCTION SITES BASF Ammonia Plant Location: Freeport Cost: $600 million On Schedule: 2018 Construction jobs: 700 at peak construction New permanent jobs: 35

INEOS OLIGOMER Linear Alpha Olefin Plant Location: Chocolate Bayou Contributed photo

LyondellBasell Chocolate Bayou employees are presented the 2017 Elite Gold Safety Award by representatives from the American Fuel and Petrochemical Manufacturers. The facility has gone three years without a recordable injury, five years without a level two or greater process safety incident and 10 years without a level two or greater environmental incident at the end of May.

LYONDELLBASELL PERFORMANCE EARNS TOP INDUSTRY AWARD Special to Gulf Coast Giants

The Chocolate Bayou Plant of LyondellBasell, one of the world’s largest plastics, chemicals and refining companies, received the 2017 Elite Gold Safety Award from the American Fuel and Petrochemical Manufacturers for exceptional safety performance.

Representing the top 1 percent of industry performers, the Elite Gold Safety Award recognizes petrochemical plants with excellent safety performance and program innovation.

Staff from the site was on hand for the awards ceremony at the National Safety Conference in San Antonio. Additionally, the plant recently celebrated its 30th anniversary.

“Safety has underpinned our

16

GULF COAST GIANTS

operations for three decades,” said Greg Gray, site manager of LyondellBasell’s Chocolate Bayou Plant. “Our employees work hard every day to ensure we return home to our families exactly how we left. Being recognized for our safe operations on the heels of our 30th anniversary makes this award even more meaningful and really speaks to the continued dedication of our staff.”

The facility has gone three years without a recordable injury, five years without a level two or greater process safety incident and reached 10 years without a level two or greater environmental incident at the end of May. In 2016, the plant was recognized with AFPM’s Elite Silver Award

Cost: More than $500 million On schedule: 2018 Construction workers: 800 New permanent jobs: 80

FREEPORT LNG Gas Liquefaction and LNG Export Facility, Trains 1, 2 and 3 Location: Quintana Cost: $14 billion Construction jobs: 5,000 at peak New permanent jobs: More than 230

MEGLOBAL Monoethylene Glycol Plant Location: Dow Texas OperationsOyster Creek Cost: $1 billion Construction workers: 1,400 New permanent jobs: 50

PRAXAIR Air Separation Unit for Argon, Nitrogen, Oxygen & Carbon Dioxide Location: Freeport Cost: $104 million Construction workers: 70 New permanent jobs: 15

See AWARD, page 48 SUMMER 2018

018

GCGIANTS@THEFACTS.COM

GULF COAST GIANTS

17

REA

CHOICE

A

D

The Only Certified Water Damage And Fire Restoration Company In Brazoria County.

RS’ DE

R WA

A Trusted Name For 47 Years!

• Residental • Commercial

2 018

Celebrating 60 years of creating chemistry - and futures - at the BASF Freeport site!

Fi

•C •P •C •T •W •P •2

Sa

•C •O

4

Ph

18

GULF COAST GIANTS

SUMMER 2018

STRUCTURAL Opens Freeport Area Office STRUCTURAL is excited to announce the opening of its new office in the Freeport area, located at 1024 Brockman Street, Clute, TX 77531. This new location will allow more local, rapid response to customers in the area. STRUCTURAL has offices across the country, including the Houston, Lake Charles and Baton Rouge areas to serve the gulf coast. For more information about STRUCTURAL’s services in the Freeport area, please call 832-259-2003 or visit our website at www.structural.net.

CE A R WA

D

8

018

STRUCTURAL, a Structural Group company, is widely recognized as the industry leader in concrete and structural repair. With a reputation for quality, safety, client satisfaction, and efficient project delivery, STRUCTURAL has been called upon to help solve some of the most challenging issues with structural and civil infrastructure. In combination with other Structural Group companies, STRUCTURAL holds the position as the largest specialty concrete repair contractor in the United States and is ranked #42 on Engineering News-Record (ENR) magazine’s list of the Top 600 Specialty Contractors.

About Structural Group With member companies dating back to 1902, Structural Group is firmly committed to its ongoing mission to make new and existing structures stronger and last longer.

Through its member companies, Structural Group delivers turnkey solutions that integrate technology, engineering, and construction. Structural Group provides specialty contracting services through STRUCTURAL, and state-of-theart proprietary products and engineering support services through STRUCTURAL TECHNOLOGIES.

Field Service

• Chemical metering pump and service • Plastic tank rental installation and repair • Cooling tower chemical piping and repair • Temporary cooling tower chemical feed systems • Water treatment chemicals • Potable water service • 24 hour service

Safety Equipment • Cool Down Trailers • OSHA Approved Safety Shower, Trailers and skids

Jenkins Industries Serving Texas Gulf Coast Since 1986

4202 Hwy 36 • Freeport, TX 77541 Phone: 979.239.4267 • Fax: 979.233.6619 Bleach, 93% Sulfuric Acid, Sodium Bisulfite, Sodium Chlorite.

We are capable of expediting and delivering any manufactured water treatment chemical

GCGIANTS@THEFACTS.COM

GULF COAST GIANTS

19

20

GULF COAST GIANTS

SUMMER 2018

018

SAFE AND SOUND Whenever a ship brings goods to Port Freeport, the Brazos Pilots are there to guide it through narrow bends to berth. Being a pilot takes extensive maritime and port knowledge — and courage.

BY MARY NEWPORT

BARCLAY FERNANDEZ/Gulf Coast Giants

Brazoria Deputy Pilot Ross Coviello, Branch Pilot Daniel Blanton and Deputy Pilot Sean Kelly pose for a photo inside their boat.

SAFETY

O

ut past the safety of Port Freeport, where the Gulf of Mexico’s siltbrown water turns cerulean blue, a tiny pilot boat rides the water like a drunken duck. Snuggled alongside 800 feet of ship and hidden from the worst of the waves, the boat bobs hard enough to jolt the ship’s occupants — not that they seem to notice.

“It’s a very calm day,” Capt.

Daniel Blanton says. “Come out here in November.”

In the winter months, pilots like Blanton will see waves that drop boats 8 feet in the blink of an eye or that slam it up against the ship they’re floating alongside. That’s when life gets dangerous for the members of the Brazos Pilots Association, the organization charged with guiding ships safely out of the port.

Capt. James Teeter and a pair of trainees, Deputy Pilot Ross Coviello and Deputy

Pilot Sean Kelly, set out on one such mission June 15. The trio were called to escort the Eagle Klang. They boarded, with Teeter coordinating tugboats and directing the ship on its careful way out.

“That was a loaded tanker, had half a million barrels of crude oil on it,” Teeter said.

“So we took it out, got the tugs, coordinated everybody to clear the channel. The pilot boat acts as our moving security zone, they tell us about obstructions and other traffic.

BARCLAY FERNANDEZ/Gulf Coast Giants

Freeport Pilot 1 boat operator Jack Stanley keeps it steady with an outgoing 800-foot ship June 15. It takes about two hours to guide a ship from Port Freeport to the Gulf of Mexico.

22

GULF COAST GIANTS

SUMMER 2018

The he d, ugp

No Job To BIG Or SMALL

River Bottom Sand LLC

Multiple Pits Thruout Brazoria County And Beyond

E x cellent C ustomer Serv ice For ov er 2 5 years

er, f .

dy lot cut ffic.

018

Gaskets Anchors in Service ipe Hangers olts uts Tools Hilti Distributor

• Sand • Clay • Select Fill • State Certified Beach Sand • Lime Stone • Site Work • Stabilized Material • Crushed Limestone • Tandem Trucks • Backhoe • Dozer • Excavators • Graders • Building Demolition

979-798-8036 TEXT TO 979-292-6578

GCGIANTS@THEFACTS.COM

2 4 H our C all O ut W . P lantation, C lute 9 7 9 - 2 6 5 - 9 0 3 2 B raz osF asteners.com

3 1 2

GULF COAST GIANTS

23

SAFETY

BARCLAY FERNANDEZ/Gulf Coast Giants

The 800-foot Eagle Klang prepares to depart from Port Freeport with a Brazos Pilot controlling the vessel June 15. Pilots are the only ones with the knowledge and skills to safely move ships in and out of the port.

We got them out and here we are.

Took us about two hours.”

The reason for the caution is simple: Any port, no matter how roomy, is a narrow and crowded place compared to the open ocean. With a steady stream of ships attempting to enter and leave every day, it’s vital to have knowledgable hands guiding ships in and out of the port without causing any damage to them, their cargo or the bustling structures that line the water. The Brazos Pilots provide that service, but they run a great risk to keep the port safe.

Their method of entry and exit from the massive ships is a ladder of planks and rope that leads over the side and down into the bobbing pilot boat. On a good day, it’s a careful step down while the boat operator keeps things steady. On a bad day, it’s a

24

GULF COAST GIANTS

“You can live on the ladder and you can live on the boat, but you cannot live in the middle.”

CAPT. JAMES TEETER

guessing game while waves take their course.

“It’s the most dangerous part of what we do. Today was a very good day. On a very bad day, the boat that you’re on is gonna be going up and down as much as 10 or 15 feet,” Teeter said. “You can live on the ladder and you can live on the boat, but you cannot live in the middle. Most pilots

that are injured and killed, the transfer is where it happens.”

They lost Capt. Mark Hicks that way in the late 1980s. He was the last Brazos Pilot to die on assignment, but tragedy struck close to home June 16 when Aransas-Corpus Christi Pilots Association Capt. Robert Louis Adams died after a gangway collapsed as he was boarding a vessel. Despite the risks, Blanton said the Brazos Pilots have an excellent safety record.

“Safety is No. 1 and efficiency is No. 2,” he said, and their work ensures the port — and the commerce it launches — can keep growing.

The Brazos Pilots don’t merely make sure the queue of ships waiting to get in don’t physically threaten the port. They also act as goodwill negotiators, keeping the peace between companies that SUMMER 2018

018

would all like to see their ship coming down the waterway right now. When tensions get high and lines get long, it takes impartial pilots to keep things fair and calm.

“None of these companies own the waterway, they all have to share it. To get (them) to share a common asset, there has to be an intermediary in there. They have to know that we move the ships in an order that is outside the commercial interest,” Blanton said.

That’s not to say the pilots don’t make any money. Most people assume it’s a tax-funded service, but that’s not so, Blanton said.

The BPA is a private company, paid by shippers for each piece of work. But since their service is so vital, they’re in a unique position. The Brazoria County Pilots Licensing and Regulatory Act sets the rates they can charge, and they can’t refuse to do business with anyone, except for certain safety reasons.

“We are a private company.

We’re regulated locally and we’re appointed by the governor,” he said. “We are not under the commercial pressures that shippers are under, the commercial aspect of the business isn’t our No. 1 focus.”

See PILOTS, page 48

BARCLAY FERNANDEZ/Gulf Coast Giants

Brazos Pilots make their way off the 800-foot Eagle Klang as it heads out to sea June 15. It is the most dangerous part of the job.

Dow Texas Operations is proud to invest and grow in Brazoria County.

78 Thank you for 76 years of business and community success.

We look forward to many more.

www.dow.com

Dow Texas Operations

For more information on our operations, activities and community outreach efforts visit www.facebook.com/DowTexasOperations

GCGIANTS@THEFACTS.COM Dow Facts Gulf Coast Giants 2016.indd

1

GULF COAST GIANTS 3/15/16

25

4:58 PM

TH TH T TI

P 1

•C ••C ••C ••F ••P ••F •

F

9 9 9 ww

w w

Comfortable. Convenient. Affordable.

The easiest move-in ready housing in Freeport, Texas.

Recently Expanded with Studios Available Now! Same day move-in. No lease, no credit check, and no application fee.

Pay as you go – weekly or monthly.

All-inclusive pricing: Utilities, Wi-Fi, and satellite TV included.

Simplicity You’re Looking For & Amenities You’ll Enjoy.

Each Fully Furnished Studio Includes: • In-suite washer and dryer • Reserved parking • Recliner, computer desk & chair • Dishwasher • Full kitchen with cookware and utensils • Full-size bed • Full-size bathroom • 40” flat panel TVs • Weekly cleaning High Quality Studios, Excellent Service Safe & Secure 24-Hour On-Site Staff Availability

www.freeportstudios.com

Call Today!

877.477.0060

mikeking@pacificmobile.com 525 County Road 330 Freeport, TX 77541 Between Freeport and Jones Creek at Corner of State Highway 36 and County Road 330

THE OFFICE SECRET SECRET THE BEST BEST KEPT OFFICE THE BEST KEPT OFFICE SECRET THE BEST OFFICE SECRET ININ THE BRAZOSPORT AREA!!

THE BRAZORIA AREA!!!

ININ THE BRAZOSPORT AREA!!

THE BRAZORIA AREA!!!

Since 1958

Property Available Now 102 Oak Park Dr., Clute Up to located 13,000insq. ft.

• Centrally Brazosport on Business 288

Centrally located on Business 288 ••Convenient access in to Brazosport major transportation modes • Convenient access to major transportation modes • Convenient access to all major industry Convenient to all major industry ••Flexible officeaccess floor plans Flexible office security, floor plans s ••Paved parking, elevator Nice Plus!

• Paved parking, security, elevator u o i c • Flexible lease plans Spa • Flexible lease plans

Freeport Business Park, 1700 Block of W. 4th

Also Office Warehouse / Office Space Available!

979.292.5391 979-292-5391 979.292.5391 979.709.6655 979-709-6655 979.709.6655 713.725.0416 979-299-9457 713.725.0416 www.rentofficewarehousetx.com

Vernor Material & Equipment

Vernor Material & Equipment Co., Inc. (VME) was founded on the principle of providing excellent service with unquestioned integrity at competitive prices.

It is our people who make VME the business that it is today.

www.rentofficewarehousetx.com www.rentofficewarehousetx.com

25 thAnniversary Our team consists of many experienced and capable employees.

NEW NEW HOMES HOMES AVAILABLE AVAILABLE NOW! NOW!

$ $$1,020 $1,166 ** MO. MO.

• $0 DOWN* • $0 DOWN* • GATED COMMUNITY • GATED COMMUNITY • MASTER PLANNED • MASTER PLANNED • LOW TAXES • LOW TAXES

CALL CALL NOW! NOW! 979-345-3510 979-345-3510 KendallHomes.net KendallHomes.net *$1,020 MO. PAYMENT IS BASED ON “KENT MODEL”. P&I OF $184,990 SALES PRICE @ 4.25 FIXED *$1,166 MO.TERM. PAYMENT IS BASED “CALDWELL MODEL”.

P&I OF $200,990 SALES PRICE @ 4.75 FIXED 30-YEAR $0 DOWN FORON QUALIFIED BUYERS AT PURCHASE WITH USDA PROGRAM. PRICES, 30-YEAR TERM. $0 DOWNRATES, FOR QUALIFIED BUYERS AT PURCHASE WITH USDA PROGRAM. PRICES, AND PAYMENT SUBJECT TO CHANGE. RATES, AND PAYMENT SUBJECT TO CHANGE.

GCGIANTS@THEFACTS.COM

•Heavy Equipment Operation •Aggregate Supplier •Plant Services •Civil and Mechanical Services

•Roll-off Boxes •Road Building •Demolition •Transportation •Metal Recycling

Vernor Material & Equipment 545 Wilson Road Freeport, Texas 979.233.3366 www.vernor.com GULF COAST GIANTS

27

28

GULF COAST BARCLAY FERNANDEZ/Gulf Coast Giants

GIANTS

SUMMER 2018

018

GATEWAY TO THE

FUTURE Brazoria County voters once supported the creation of Port Freeport, an essential player in United States trade with other countries. With an eye on the future, port officials needed to convince them to support it again.

GCGIANTS@THEFACTS.COM

BY ERINN CALLAHAN

GULF COAST GIANTS

29

nt

th-

ic d be

FU R NI SHE D A P A R TM E NTS W I TH U TI L I TI E S P A I D A s S hort A s M onthly L eases A vailab le! ther 1,2, and

edroom Apartments Available

ewly updated Fitness Center efreshing ool with ounge Area et Friendly Convenient ocation

Relax And Spread Out!

Open Mon., Wed. & Fri. 9am-6pm, Tues. & Thurs. 9am-7pm, Sat. & Sun. by appointment www.springsoflakejackson.com

Giant in the Making Ours is a whale of a project.

Be it in terms of investment, new jobs created or economic impact in the Brazosport area and beyond.

We are on schedule to start liquefying abundant U.S. natural gas and sending LNG to global markets in 2018.

You can learn more about our construction progress at FreeportLNG.com

s ing es,

018

GCGIANTS@THEFACTS.COM

GULF COAST GIANTS

31

INDUSTRY

Voters not only created the district in 1925, but also gave Port Freeport taxing authority and authorized issuing the first ad valorem tax bonds to be used to divert the Brazos River, she said.

“The voter’s strategic decision to support the creation of a deep-water port and the later expansions have been a key driver to the economic growth in Brazoria County,” Saathoff said.

“Throughout the port’s history, the voters of Brazoria County have understood the importance of having a safe, reliable channel that can support the movement of commerce.”

Tax bonds were issued again in 1951 to acquire land and build the port’s first dock and terminal facilities. Nearly 30 years later, in 1980, voters again supported ad valorem tax bonds to acquire more than 8,700 acres for the port’s expansion, Saathoff said.

Port officials increased the tax rate from 1987 to 1994 in order to help pay the local share to deepen the channel to its current 45 feet, she said.

The port’s previous funding request, however, was less successful. Voters in 2006 overwhelmingly shut down a $50 million bond proposal that would have paid for the port’s seventh berth — the 1,200-foot long Velasco Terminal, with 90 acres of backland.

Supporters of the issue said the berth was needed because space at the port is limited, and it is expected to attract more business to the area, but confusion concern-

32

GULF COAST GIANTS

BARCLAY FERNANDEZ/Gulf Coast Giants

Port Freeport Executive Director and CEO Phyllis Saathoff explains to Public Affairs Manager Lauren McCormick the different construction and operations taking part June 22 as the port expands. Saathoff left Port Freeport for a few years but returned because she felt there was unfinished business.

ing ballot wording ultimately proved detrimental to the bond’s passage.

Officials also spent time informing the public that the bond election was unrelated to the $50 million conduit bond the Brazos Harbor Industrial Development Corp. and port commissioners approved selling in October to BASF Corp. for solid waste disposal facilities.

LAYING THE GROUNDWORK For Saathoff and other officials, efforts for the latest bond issue began 15 years ago when the port entered into a Feasibility Cost Sharing Agreement with the U.S. Army Corps of Engineers.

“The current channel, at a depth of 45 feet, is not designed for the larger global vessels in service today,” Saathoff said.

“The new generation vessels that carry more cargo require deeper water and expanded areas for

safe navigation.”

Congress approved the Water Resource Development Act in 2014, designating the port as an “authorized project” to deepen the channel to depths ranging from 51 to 55 feet, Saathoff said.

Shortly after that authorization, a re-evaluation addressed minor project improvements such as a bend easing, a slight channel widening and a turning basin augmentation designed to help large ships turn more safely, she said.

Four years later, in February, Port Freeport commissioners unanimously decided to put the $130 million bond before voters, Saathoff said.

“After thorough financial analysis, it was determined we, the community, had a unique opportunity to fund the local sponsor share of the cost to construct the Freeport Harbor Channel Improve-

SUMMER 2018

018

P rinting and P romotional P roducts

C ome V isit O ur S howroom...

160 ld Angleton oad Clute 7 -265-7 www.detail-products.com sales detail-products.com GCGIANTS@THEFACTS.COM

GULF COAST GIANTS

33

INDUSTRY

ment Project with ad valorem tax supported bonds without raising the port’s total tax rate,” she said.

This was possible largely due to the more than $26 billion in investments for area refinery and petrochemical plant expansions, Saathoff said.

The tax abatements granted for many of those projects will begin expiring soon and that new value will be added to the tax roll from 2021 through 2028, which will support holding the total tax rate at its current level, she said.

Before presenting the bond issue to voters, Saathoff met with top taxpayers and port partners to emphasize the importance of the channel improvement project.

“Over the next several months, it was our mission to connect with as many members of the community as possible to inform them about the project and purpose of the bond election,” she said.

Port officials created information materials and a website centering around the bond election to disseminate that information to taxpayers, and Saathoff conducted numerous presentations with community organizations, chambers of commerce members and other forums and groups.

In May, taxpayers again threw their support behind the port, with 60.9 percent of voters in favor of a $130 million bond issue that will help Port Freeport fund its portion of a project to deepen and widen its main waterway.

The money will be paired with $165 million from the federal gov-

34

GULF COAST GIANTS

Port Freeport contributed photo

Port Freeport Executive Director and CEO Phyllis Saathoff used this slide in presentations given to gain voter support for the $130 million bond needed to increase the depth of the port to 55 feet. Saathoff told voters the port’s tax rate would not increase despite the new bond because the funds would be shifted from maintenance and operations to debt service.

“With the passage of the bond election, the voters delivered a clear message to the federal government and the Corps that ... the Freeport Harbor Project should be prioritized for federal funding.”

Phyllis Saathoff, Port Freeport CEO and executive director

ernment to pay for widening the channel and deepening it from its current 45 feet to authorized depths of 51 to 55 feet, Saathoff said.

“The outreach efforts and shared vision between the port, its partners and the community resulted in the passage of the bond issue,” Saathoff said. “With this win, the port can move forward with the channel project and create a legacy of continued economic opportunity and prosperity for the region that can support future generations, just as others did before us.”

TIMELINE OF CONSTRUCTION Deepening the Freeport Harbor Channel to 55 feet will make it the deepest in Texas, enabling officials to market Port Freeport to a wider range of global vessels, including those that now transit the expanded Panama Canal, Saathoff said.

“The deepening and widening of the channel will improve safety and efficiency, allowing carriers to not only dispatch larger vessels, but will also enable these vessels to load to a fuller capacity, thus reducing transportation costs and achieving greater economies of scale,” she said.

Port officials received approval in May

SUMMER 2018

018

INDUSTRY

from the U.S. Army Corps of Engineers for the Freeport Harbor Channel Improvement Project General Reevaluation Report and Environmental Assessment, which identified several project improvements important for safe navigation, Saathoff said.

“With this final approval and passage of the bond election, we are working with the U.S. Army Corps of Engineers to accelerate the engineering and design phase of the project with the intent to award the first contract for construction in 2020,” she said.

Construction is expected to take five to seven years, she said.

“With the passage of the bond election, the voters delivered a clear message to the federal government and the Corps that the financing plan for the local sponsor share of the project is in place and the Freeport Harbor Project should be prioritized for federal funding,” Saathoff said.

FUTURE OF THE PORT Although the channel improvement project remains top priority, Port Freeport continues to make progress towards several strategic initiatives, including the expansion of the container handling terminal, development of rail-served warehousing and distribution facilities and supporting the development of efficient multimodal transportation connections to and from Freeport, Saathoff said. “ As Port Freeport continues expanding its role in regional and global commerce and leadership in our community, we look forward to working together toward a strong, prosperous future for all,” she said.

36

GULF COAST GIANTS

BARCLAY FERNANDEZ/Gulf Coast Giants

Phyllis Saathoff, Port Freeport executive director and CEO, checks with William Jelks the progress of ships being loaded with vehicles June 22. Saathoff said she loves working at this port because of the great work community.

HOEGH AUTOLINERS CREATES OPPORTUNITES AT THE PORT On May 27, for the first time in the port’s history, two roll-on rolloff carriers called Port Freeport’s public docks at the same time.

Hoegh Autoliners was expected to have four vessels call Port Freeport that week.

An increasing number of jobs opportunities are being brought to the region by Hoegh Autoliners and the services provided by Horizon Terminal Services, such as loading and unloading cargo and quality inspection.

GLOVIS CALLS PORT FREEPORT AS NEW MONTHLY SERVICE On June 3, Glovis made first call of Port Freeport as a new monthly service to West Africa.

Personally owned vehicles and preowned heavy machinery and trucks transported into Port Freeport were loaded onto the Glovis Courage. Courage sailed with nearly 500 units being exported from the port.

Port Freeport thanked Horizon Terminal Services for facilitating the new service.

SUMMER 2018

018

WE’RE READY TO SERVE YOU NEW ENGRAVING MACHINES

•S •

W

•S •C

•F

•T C

•L •B Manufacturer of industrial, commercial, marine, office signage and plaques

• Backhoe • Dozer • Tandem Trucks

• Personally Engraved •

• Track Excavators • Equipment Rentals

www.justicesandco.com •

H

Eric Threatt Owner/Engraver

S

358 E. Plantation, Clute

S A H

•

B T

C

FAX 979-299-3016 info@gcengraving.com • www.gulfcoastengraving.com

H

SUMMER SAVINGS!

Gulf Coast Family of Dealerships

•Fleet •Commercial •Personal

•New •Pre-Owned •Body Shop •Maintenance & Repair OUR VISION

OUR MISSION

OUR PROMISE

TO BECOME THE MOST RESPECTED AND SUCCESSFUL DEALERSHIP IN OUR COMMUNITY.

TO PROVIDE THE VERY BEST CUSTOMER SALES AND SERVICE EXPERIENCE IN OUR COMMUNITY

WE WILL TREAT EACH CUSTOMER AND ASSOCIATE AS IF THEY WERE A GUEST IN OUR HOME. WE WILL ACT LIKE LADIES AND GENTLEMEN SERVING LADIES AND GENTLEMEN.

VOTED Favorite Auto Dealership All 5 Years GCGIANTS@THEFACTS.COM

288B @ FM 523 • Angleton • Gulfcoast.com 979-849-2351 • 888-828-7200 GULF COAST GIANTS

37

YOUR POTENTIAL.

At SI Group, we create smart chemistry that solves global challenges and makes great things possible.

We have been proud to support Brazoria County for over 40 years. www.siigroup.com

215 Flag Lake Drive Clute, TX 77531 979-709-2594 Email: craig@kaspar-construction.com

KCG Industrial provides full mechanical construction services to the Oil and Gas, Petrochemical, and Chemical Industries including: Direct Hire • Project Management • Civil • Structural Steel Erection • Pipe Fabrication and Erection • Specialty Welding • Equipment Installation

38

Subcontract • Electrical & Instrumentation • Blasting and Painting • Insulation • Scaffolding

GULF COAST GIANTS

We specialize in turnkey mechanical projects with a high emphasis on safety, quality, project controls and project turnover. At KCG Industrial the start and completion of a successful project begins with a highly detailed cost estimate and schedule. We work very closely with our clients to ensure the scope of work is conclusive and all costs are captured; thus ensuring we deliver a project that is under budget and on schedule. We provide the following project services during the multiple phases of our projects: • Estimating • Project Planning and Scheduling • Safety Planing and Site Safety • QA/QC

• Cost Control • Project Reporting and Updating • Project Sell-Off and Turnover • Warranty

SUMMER 2018

COMMUNITY

CLEANS UP Contributed photos

Employees of MEGlobal cleaned up the Gulf coastline during a Texas Adopt-A-Beach cleanup in April.

om

the ed sure g the

ng

018

EQUATE GROUP EXPERIENCES BEST 1ST QUARTER Special to Gulf Coast Giants

KUWAIT — The EQUATE Group, a global producer of petrochemicals, reported its best first quarter results since the group’s inception.

The EQUATE Group reported a net profit of $435 million, up 41 percent from the first quarter of 2017. The financial results from the first quarter of 2018 show earnings before interest, taxes, depreciation an amortization of $577 million, up by 22 percent from the same GCGIANTS@THEFACTS.COM

quarter a year ago.

The EQUATE Group combines the Kuwaitbased EQUATE Petrochemical Co. and its subsidiaries MEGlobal, Equipolymers and The Kuwait Olefins Co. EQUATE’s performance was driven by a robust polyethylene market demand in all regions, a sharp price increase in Monoethylene Glycol due to tight global supply conditions and operational reliability in Kuwait, Canada and Germany.

“This remarkable achievement demonstrates the ability of EQUATE personnel across the globe to deliver operational excellence consistently,” said the EQUATE Group’s President and CEO, Ramesh Ramachandran. “We have been able to deliver on the cost and growth synergies identified after the MEGlobal acquisition, and our shared strategies on innovation and optimization of the ethylene glycol plants enabled several operational breakthroughs in Q1.”

GULF COAST GIANTS

39

40

GULF COAST GIANTS

SUMMER Contributed2018 photo

018 photo

PEOPLE POWERED

REINVENTING HIMSELF ANDREW LIVERIS LOOKS BACK ON DECADES LEADING DOW

By KATE CARLSON

W

Midland Daily News

hile Andrew Liveris was cleaning out his office in Midland, he came across a 15-year-old Dow vision document he penned a year before he was appointed CEO of The Dow Chemical Co. in November 2004. “It was all in here,” Liveris said, flipping through the document with nostalgia.

“See this document, that’s been the last 15 years, right here.”

At the end of his tenure, the 64-year-old CEO oversaw the merging of Dow and DuPont last year in a $130 billion deal, and stepped down from his executive chairman position of DowDuPont in April. On July 1, Liveris effectively retired from his position of leading the newly merged company ahead of the Materials Science Division of DowDuPont separating to form the new Dow. “My interests and passions were to make Dow relevant again, to put the Dow diamond at the forefront of global conversations,” Liveris said. “So to do that you have to be out there, you have to be with your troops - the metaphor of war is there - Do you sit back or are you there in the front lines? And I spent my time in the front lines.”

GCGIANTS@THEFACTS.COM

“I was built for that timeframe, to put Dow’s transformation firmly back at the heart of innovation, entrepreneurship and agility.”

Andrew Liveris, The Dow Chemical Co. CEO

Liveris’ long career at Dow began in his home country of Australia.

He later worked in several different countries in various roles from man-

ufacturing and engineering, to sales, marketing and management before joining Dow’s Board of Directors in 2004, months before becoming CEO. Liveris says he was chosen as Dow’s leader “for what was needed at the time,” he said. “I was built for that timeframe, to put Dow’s transformation firmly back at the heart of innovation, entrepreneurship and agility.”

He has worked to position Dow to be on the forefront of research, development and innovation, and the recent merger resulting in DowDuPont has largely been championed as a success.

Liveris plans on writing a few books, he said, and added he will remain involved with Dow at least on the periphery. In retirement he anticipates living with his wife,

GULF COAST GIANTS

41

PEOPLE POWERED

Paula, between his home in Midland, Australia and other locations, he said.

“We never understood this American model until we got here,” Liveris said. “The interaction between a big company and small town, and how much of America was built on that, especially here in the Midwest.”

Early on, Liveris said he recognized the loss of jobs and young people in Midland was starting to affect the company.

“We were really finding it hard to move people here, and the community was great, but the facilities were certainly not of a modern society, so we needed to do something about that,” he said. “This is a great community to raise a family, but you’ve got to keep that standard appropriate to this century.”

Through Dow’s foundation, working to fix this problem included investing in Midland’s downtown, helping to fund a new baseball stadium and other community investments.

“This building up of the community’s confidence of itself is good for Dow, because what ends up happening is we start to attract people who want to be here,” he said.

Contributed photo

Maintenance Technical Services personnel show the drone technology to Dow Chairman and CEO Andrew Liveris when he visited Freeport in January 2016.

Confident he is leaving the company in healthy condition, Liveris is reflecting on his tenure as he prepares to leave the company he has worked at for 40 years, the last 14 as its leader.

Liveris recently returned from visiting 12 countries touring Dow locations across the globe, ending back at Dow’s corporate campus in Midland on Monday to celebrate the opening of the new Andrew N. Liveris Visitors and Heritage Center.

During his travels, Liveris recalls a keynote he delivered to his employees at a conference to celebrating Dow’s progression on its inclusion goals.

When Liveris uttered the words “It’s kind of like leaving a family,” to

the crowd, he got choked up. “… Looking at some of these young faces right in front of me, I could see all nationalities of all shapes, sizes, all possible mixes of people and I just got all choked up about all Dow people and how they’ve come to rely on me to be their leader on something like this,” Liveris said.

Changing the culture of Dow to make it a more inclusive company working toward being a leader in innovation is one of the achievements

See LIVERIS, page 48

In “Make It in America: The Case for Reinventing the Economy,” Andrew Liveris — former chairman and CEO of The Dow Chemical Co. — offers a thoughtful and passionate argument that America’s future economic growth and prosperity depends on the strength of its manufacturing sector.

42

GULF COAST GIANTS

SUMMER 2018

YOUR SMALL BUSINESS LENDER

FOR ALMOST 60 YEARS

COMMERCIAL LOANS ONLINE BANKING VISA CHECK CARD DEPOSIT SERVICES CASH MANAGEMENT CLUTE - LAKE JACKSON - MANVEL FDIC

photo

www.bankatfsb.com

en he

w

s,”

y innts

018

2024 North Brazosport Boulevard Richwood, TX 77531 tf: (979) 265-1309

www.setpointis.com richwoodsales@setpointis.com OEM Partners & Certifications

GCGIANTS@THEFACTS.COM

GULF COAST GIANTS

43

018

Fence Company Commercial & Industrial

E

• E

•

ree Es a es Bonded & Insured

• 281-456-7273

fosterfence.com 16700 Beaumont Hwy. o s on

We Accept All Major Credit Cards

E

IN THE NEWS

BRAZORIA STUDENT WINS PHILLIPS 66 SCHOLARSHIPS Special to Gulf Coast Giants

A Sweeny High School senior will receive a $16,000 college scholarship from the Phillips 66 Dependent Scholarship Program.

The competitive program awards outstanding college-bound students whose parents work for Phillips 66 or one of its subsidiaries.

The awards are based on academic excellence, community service and financial need.

The company announced Thomas Campbell, of Brazoria, as an honoree this year. Thomas, Son of Phillips 66 employee Paul Brunner III, is a senior at Sweeny High School.

“This scholarship program re-

flects Phillips 66’s commitment to the communities where we live and operate, and builds on our corporate vision of improving lives,” said Claudia Kreisle, Phillips 66 director of Philanthropy & Community Engagement. Phillips 66 is a growing

energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses, headquartered in Houston.

“We congratulate Thomas on his achievements inside and outside the classroom and wish them every success in college,” Kreisle said.

The Phillips 66 Dependent Scholarship Program will annually award as many as 66 four-year scholarships of $16,000 each for higher education at any accredited institution. Scholarship America, a neutral, third-party administrator of educational assistance programs, selects the recipients and manages the program for Phillips 66.

WE ARE COMMITTED TO: • The safety of our employees, contractors and the surrounding community

W O L SE L E Y I ndustrial G roup

• Reliable operations • The production of high quality products

AE

• Being good stewards of our resources • Our employees and creating a great place to work

4 0 3 S Gulf B lv d Freeport, TX 7 7 5 4 1 ffice ( 7 ) 2 -7127

“Trust earned through performance” IS

46

001 200

GULF COAST GIANTS

SUMMER 2018

IS

Specializing in Stainless Steel and Nickel A lloy Fabrication and M achining I ndustrial M achining, Fabrication & W elding MMI is certified to ASME Sec. VIII Div. 1 to build pressure vessels, heat exchangers and power piping in all types of Alloys and carbon steel materials.

Speciality I tems &

W aterj et Serv ices

Exchanger Tube lugs addle linds rifice lates Spectacle linds Thermowells leed ings Valve Automation Hardware

AERIAL WORK PLATFORMS

CRANES

EARTHMOVING

Imagine Having Your Own CFO Matthew P. Rickaway, CRPC® 713-973-3800 979-319-1162 mattrickawaybaird.com mrickaway@rwbaird.com

You manage a lot and you do it well. But there’s nothing wrong with delegating what you know you can. We can help ensure your financial decisions provide the peace of mind you deserve.

2200 . ra osport lvd. ichwood, T 775 1 hone 7 -265- 0 Fax 7 -265-776 www.muellermfg.com

k

018

001 2015 Certified

FORKLIFTS

Baird does not offer tax, legal or banking services. ©2018 Robert W. Baird & Co. Incorporated. Member SIPC. MC-200086.

GENERAL EQUIPMENT

C ontact P hil for more information ( 979) 482 -0 43 1 or P Sikes.gulftex @

V ending Servi ce ffice Coffee Micro-Markets

GCGIANTS@THEFACTS.COM

gmail.com

ulk Water antry Service

GULF COAST GIANTS

47

THE REST OF THE STORY AWARD from page 16 and the Occupational Safety and Health Administration’s Voluntary Protection Programs’ Star of Excellence Award.

Doug Loy, senior health, safety and environment specialist, has been with the plant since LyondellBasell acquired it from Amoco 30 years ago. He points to the close-knit bond among his colleagues as a reason safety is so ingrained at the facility.

“Our coworkers are like family,” Loy said. “We spend time together, watch each other’s children grow up, support and encourage each other. This personal connection makes us stronger and more determined to maintain a facility free of operational issues or injuries.”

Built in 1978, the Chocolate Bayou Plant contains the only horizontal slurry loop reactors in the Americas.

Site expansions include the recent installation of two regenerative thermal oxidizers, which will reduce volatile organic compound emissions by approximately 200 tons per year.

ABOUT CHOCOLATE BAYOU PLANT At the facility, LyondellBasell produces high-density polyethylene, a plastic used in automotive parts, food packaging and personal care products. For information, visit www.lyb. com/chocolatebayou.

48

PILOTS from page 25 That focus is keeping everything safe: the ships, the pilots, the businesses and the port. So far, it seems to be working out well. Blanton said Port Freeport saw roughly 937 ships last year, with the pilots averaging about 5.2 moves a day.

With expansion in the works, he anticipates an even higher volume of ships in the coming year. The BPA is already working to make sure that doesn’t disrupt things in the port.

“When they want to build a dock on

LIVERIS from page 42 Liveris says he is most proud of as he is leaving his post.

“I reinstalled some of that hunger and ambition,” Liveris said.

Liveris does not see himself slowing down much in his retirement -- a word he says he does not understand. An example of this is today’s announced collaboration with Delta College, Dow and the University of Michigan to open a Delta campus building in Midland’s downtown, “to invest back into creating leaders of the future,” he said.

The Andrew N. Liveris Innovation Institute will be housed on the first floor of the building.

Liveris will serve as an ongoing instructor and counselor as a part of the project.

In his retirement, Liveris also will join the Saudi

GULF COAST GIANTS

the channel, they obviously are doing so so that they can eventually get a ship to that dock. From the early, early conception phase, they come and talk to us. We work directly with their engineering groups,” Blanton said. “That is part of what we do in addition to moving ships, we help develop docks and infrastructure.”

The Brazos Pilots Association currently has three full pilots and six working toward pilotage. Whether that will be enough to keep up with demand at Port Freeport, only time will tell.

Aramco board of directors, the world’s biggest crude exporter.

“I will go out there and work on behalf of American communities, and global communities and civil society in the absence of government doing it,” Liveris said.

“And in so doing I am sure it will help Dow, in fact I know it will.”

Liveris is no stranger to working with politicians on behalf of Dow and the rest of the industry.

He was the chair of President Donald Trump’s Manufacturing Council before it was disbanded by the president last year. Before that, Liveris also served as co-chair of President Barack Obama’s Advanced Manufacturing Partnership steering committee.

“Whatever administration it may be, I made us relevant,” Liveris said.

“To protect American jobs, but also to protect the enterprise and its profitabil-

ity, and if you look at us right now, we’re at record profits, and have been for 22 quarters in a row.

That’s not an accident.”

Cornerstones of Liveris’ earlier years as CEO include leading the company through a rocky period in 2008 in the midst of acquiring the Rohm and Haas chemical company and the credit crisis taking hold in the U.S., both contributing to decreased dividends. The health of sales increased in 2010, and later Liveris’ personal spending was questioned by internal audits.

When asked about any regrets over his tenure, Liveris quickly responded, “I wish I had gone faster.”

“We’ve got to innovate faster than the competition and their desire to commoditize us,” he said.

“If you can’t outrun the commodity cycle, you actually have no reason for being.”

SUMMER 2018

INTEGRITY TESTLABS, LLC Nondestructive Testing

y

is v-

ntly

ort

s ord

w. ”

Meeting your inspection needs since 2002.

• • • • • • • • • •

Magnetic Particle Testing Liquid Penetrant Testing Radiography - Standard, Digital, and Real Time Ultrasonic - Thickness, Shearwave, and Phased Array AutoCAD Drawings and Reports Material Testing - PMI & Hardness Ground Penetrating Radar API - 510, 570, 653 CWI Digitizing Traditional Film Manager: Brian Duke

236C Old Angleton Road I Clute, TX 77531 I 979-266-9260 bduke@itlndt.com • www.integritytestlabsllc.com

a

the cal t e to he d is’

Making a Difference by supporting the

Texas Adopt-A-Beach Program More than 75 MEGlobal employees and their families helped clean up local beaches – and had a little fun doing it – during the Texas Adopt-A-Beach program in April. It’s all part of MEGlobal’s commitment to local and global sustainability, and we’re proud to be a part of the Brazosport community.

ad

te -

aid. e

n

018

Texas Adopt-A-Beach Coastwide Spring Clean-Up GCGIANTS@THEFACTS.COM

To learn more about MEGlobal, please visit

www.meglobal.biz

GULF COAST GIANTS

49

THE BIGGEST THING WE MOVE IS TIME

At Mammoet, we provide solutions

Learn more about our operations and

for lifting, transporting, installing and

activities on our Facebook, LinkedIn,

decommissioning large and heavy

Youtube channel or Twitter.

structures. We have been a part of Brazoria County for 28 years and we are proud to support the community in which we live and work.

Discover more on www.mammoet.com

www.southernservices.org Acoustic Emission Screening Aerial Inspection Services • Drone deployed Remote Visual Inspections • Drone deployed Thermographic Inspections

Alignment Services

CUI Inspection Services Laser Scanning

Creaform Corrosion/Pit Mapping

Inspection Services FAA Certified Drones & Pilots • External • Internal • 510 • 653 • 570

Alloy Sorting Crack Detection Non-conductive Coatings Remote Field Testing Tube Inspection

Submersible Inspections

• Laser Alignment • Optical Alignment

API Inspection Services

Eddy Current Testing

Leak Testing Liquid Penetrant Testing Magnetic Particle Testing Neutron Backscatter Moisture Detection

Positive Material Identification Radiographic Inspection CR & DR Gamma & X-ray

Ultrasonic Inspection B-Scan Corrosion Mapping Guided Wave Testing Phased Array Testing Shear Wave Testing Thickness Testing

Sparkling Clear Industries, Inc. (SCI), with offices in Houston and Clute, has the distribution rights in Central/ South Texas for the Fluid Engineering (FE) line of strainers as well as the TM Filtration line of Gas Coalescing Filters.

FE strainers, which are used in many liquid applications to filter out coarse particles (>50 micron), can be supplied in many different configurations from a simple inline cone strainer to a custom engineered automatic self-cleaning strainer fabricated from exotic metals such as Hastelloy C276 or 2507 Super Duplex Stainless Steel (Zeron 100). The Fluid Engineering automatic self-cleaning strainers have the most effective and efficient cleaning cycle of ANY strainer manufacturer in the industry. With the exception of some of their cast components, all of their strainers are manufactured to their customer’s specifications in the United States. This includes not only the strainers but the skids, control panels and any special requirements such as rubber lining or specialty coatings. Strainers fabricated to conform to the ASME code are also available.

TM Filtration’s Gas Flow Membrane technology gives natural gas producers an improved way to block unwanted carryover associated with wetter unconventional gas sources such as shale and biogas. Due to the pleated construction the element has up to 20 times the filtration area of traditional filter elements. The water stays on the outside of the element and only dry gas passes through on the way to the discharge from the filter.

The net result of this advanced design is cleaner gas streams at reduced operational costs.

Vibration Analysis Visual Inspection

Virtually every storm drain located on the grounds of refineries, petrochemical plants and ancillary facilities have the potential to carry hydrocarbons (oil, grease, etc.) as well as other pollutants into area streams, creeks, lakes and other parts of the watershed. In the State of Texas the water quality in the watersheds is monitored by the Texas Commission on Environmental Quality (TCEQ).

SCI has a customer who contacted us looking to upgrade their carbon filter system that was used to capture hydrocarbons. The facility is a fuel transfer location and they wanted to ensure any hydrocarbons were removed from collected rainwater on the site. They had been using 55 gallon drums of carbon to filter the rainwater. While effective, it was a very manual, cumbersome system.

Nelson Perrin - Business Development (c) 979-709-5001 Ruben Rojas - V.P. Administration 979-265-3342 Todd Guenther - V.P. Technologies 979-265-3342

All Of Your Asset Management Solutions

In response to their request, SCI provided an automatic, four-vessel, two-train system that completely removes the hydrocarbons from the stormwater. Since the SCI system was installed, operator involvement and the headaches of ensuring clean water have been virtually eliminated.

If pollutants in the stormwater runoff are creating headaches for you, call us today and we will develop a system that suits your situation.

Call our Houston office at 713-956-8900 or our Clute office at 979-265-6555 to schedule a technical presentation of the unique features and benefits of these product lines. You can also visit us on our website at www.sparklingclear.com.

Proudly Serving Southeast Texas Since 1985 WWW.ASBESTOSHEALTHLINE.COM • FACEBOOK.COM/ASBESTOSHEALTHLINE

GULF COAST

GULF COAST GIANTS

GIANTS SUMMER 2018

Engineering Field Service ASME Repairs

FREEPORT LNG SHIFTS WITH THE MARKET

Shop Fabrication Bundle Extraction Maintenance

Chem Fabrication LLC 911 Brazosport Blvd. S. Clute, Texas 77531

Tel.: (979) 265-6600 info@chemfab.net ChemFab.net

SINCE 2003

SUMMER 2018

B31.3 piping

TAXPAYERS SUPPORT DEEPER PORT

SUPER SAILORS BRAZOS PILOTS COMBINE KNOWLEDGE, SKILL TO GUIDE CARGO SHIPS THROUGH PORT’S WATERS