Magellan Midstream Partners LP and LBC Tank Terminals LLC will increase Seabrook Logistics LLC’s oil and condensate storage and pipeline assets in the Houston/Gulf Coast area.
Overall, Seabrook Logistics’ infrastructure will be expanded. It is owned 50:50 by subsidiaries of Magellan and LBC, according to a Dec. 6 press release.
Seabrook Logistics is constructing 1.7 million barrels (MMbbl) of additional crude and condensate storage adjacent to LBC’s Seabrook, Texas, terminal.
Seabrook Logistics is also connecting its facility to Magellan’s Houston crude distribution system by constructing a 24-inch bidirectional pipeline between its facility and Genoa Junction, and also by investing in a new Aframax dock with up to a 45-ft draft.
The expansion will likely cost $250 million, and the facility will be operational during mid-2018, pending receipt of necessary permits and regulatory approvals.
Magellan is also separately investing an additional $70 million to build a new 24-inch pipeline from its East Houston terminal to Holland Avenue. This will also likely be operational during mid-2018.
Seabrook Logistics could construct an additional 3 MMbbl of storage and a second 24-inch pipeline between the facility and Magellan’s Houston crude distribution system. It could also invest in a second Aframax ship dock, possibly expanded to handle Suezmax.
Seabrook Logistics is currently in the final stages of constructing more than 700 MMbbl of new crude and condensate storage and a new 18-inch pipeline, which will connect to an existing third-party pipeline to transport crude to a Houston-area refinery beginning in the first quarter of 2017.
Seabrook would provide deepwater access through two Aframax docks and more than 5 MMbbl of storage and pipeline connectivity to refineries and terminals throughout the Houston Ship Channel and Texas City, if fully built as proposed.
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