Magellan Midstream Expands Houston Terminal and Pipeline Infrastructure

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Tulsa-based Magellan Midstream Partners, L.P. and LBC Tank Terminals, LLC of Belgium announced Thursday the companies are expanding the infrastructure of Seabrook Logistics, LLC by increasing its crude oil and condensate storage and pipeline assets in the Houston Gulf Coast area, according to a joint press release.

Seabrook Logistics – a 50/50 jointly owned subsidiary — is constructing a 1.7-million-barrel crude oil and condensate storage adjacent to LBC’s existing terminal in Seabrook, Texas.

Seabrook Logistics is also connecting its facility to Magellan’s Houston crude oil distribution system by constructing a 24-inch, 61 cm diameter bi-directional pipeline between the Seabrook Logistics’ facility and Genoa Junction while investing in a new dock with up to a 45-foot draft. The expansion is estimated to cost $250 million and is expected to be operational during mid-2018, subject to permits and regulatory approvals.

Magellan is also enhancing its infrastructure by separately investing an additional $70 million to build a new 24-inch diameter pipeline from its East Houston terminal to Holland Avenue. Magellan’s new crude oil pipeline segment is expected to be operational during mid-2018.

If market demand exists, Seabrook Logistics could construct an additional 3 million barrels of storage, a second 24-inch pipeline between the Seabrook Logistics’ facility and Magellan’s Houston crude oil distribution system and a second ship dock, which may be expanded.

Seabrook Logistics is in the final stage of constructing more than 700,000 barrels of new crude oil and condensate storage and a new 18-inch, 46 cm diameter pipeline which will connect to an existing third party pipeline to transport crude oil to a Houston refinery beginning in the first quarter of 2017.