Seabrook Logistics, a limited liability company formed from a joint venture (JV) between Magellan Midstream Partners LP and bulk liquids storage operator LBC Tank Terminals LLC, will own and operate Houston Gulf Coast-area crude oil storage and pipeline infrastructure, Magellan said June 29.
More than 700,000 barrels of crude oil storage capacity and other infrastructure will be built. A new, 18-inch pipeline will connect the new storage to a third-party pipeline carrying crude to a Houston refinery.
The new storage will be next to LBC’s terminal in Seabrook, Texas. LBC’s dock will be used; it can handle industry-standard Aframax vessels with 45-foot drafts, and there are two barge docks.
Seabrook Logistics’ crude oil storage and pipeline will cost about $95 million, supported by a long-term commitment with a major refiner. Magellan will construct, maintain and operate the pipeline, and LBC will construct, maintain and operate the storage tanks and other terminal assets.
Subject to the receipt of permits and regulatory approvals, the project will be operational in first-quarter 2017.
Walter Wattenbergh, LBC's CEO, said the project is an important part of the company’s growth strategy.
Magellan Midstream Partners LP is based in Tulsa, Okla.
Recommended Reading
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
73-year Wildcatter Herbert Hunt, 95, Passes Away
2024-04-12 - Industry leader Herbert Hunt was instrumental in dual-lateral development, opening the North Sea to oil and gas development and discovering Libya’s Sarir Field.
APA Corp. Declares Cash Dividend
2024-02-12 - At a rate of $0.25 per share, APA’s dividend is payable May 22 to stockholders of record by April 22.
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.
Occidental Increases Annual Dividend by 22%
2024-02-11 - Occidental Petroleum Corp.’s newly declared dividend is at an annual rate of $0.88 per share, compared to the previous annual rate of $0.72 per share.