Magellan Midstream Partners, L.P. (Magellan) and LBC Tank Terminals, LLC (LBC) have announced that they have entered into a letter of intent for Seabrook Logistics, LLC (Seabrook Logistics), owned 50/50 by Magellan and LBC, to expand its crude oil and condensate storage, marine capacity and pipeline infrastructure in the Houston Gulf Coast area.
As contemplated by the letter of intent, Seabrook Logistics proposes to construct up to 4 million bbls (636 000 m3) of additional storage for a total of nearly 5 million bbls (795 000 m3) adjacent to LBC's existing terminal in Seabrook, Texas. Further, Seabrook Logistics plans to connect this storage to Magellan's Houston crude oil distribution system with ‘to-be-constructed’ 24 in. (61 cm) diameter pipelines.
Seabrook Logistics also intends to construct one ship dock in addition to the recently constructed ship dock and two barge docks. Both ship docks will be able to handle industry standard Aframax vessels with up to a 45 ft (13.7 m) draft, providing efficient marine access with flexible loading and unloading services at the Seabrook Logistics facility.
The proposed expansion, which has been approved by the board of directors of both Magellan and LBC, is subject to receipt of necessary permits, regulatory approvals and completion of binding agreements. A portion of the additional new storage and pipeline assets could be operational by the end of 2017.
Seabrook Logistics is currently in the process of building infrastructure adjacent to LBC's existing Seabrook facility, including over 700 000 bbls (111 000 m3) of new crude oil storage and a new 18 in. (46 cm) diameter pipeline, which will connect to an existing third party pipeline to ultimately transport crude oil to a Houston area refinery.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.tanksterminals.com/storage-tanks/01062016/magellan-lbc-to-expand-seabrook-crude-oil-storage-houston-gulf-coast-3425/