Tulsa, OK and Mechelen, Belgium /PRNewswire/ - Magellan Midstream Partners, L.P. (NYSE: MMP) ("Magellan") and LBC Tank Terminals, LLC ("LBC") are expanding the infrastructure of Seabrook Logistics, LLC ("Seabrook Logistics"), owned 50/50 by subsidiaries of Magellan and LBC, by increasing its crude oil and condensate storage and pipeline assets in the Houston Gulf Coast area.
Seabrook Logistics is constructing 1.7 million barrels (270,000 cubic meters) of additional crude oil and condensate storage adjacent to LBC's existing terminal in Seabrook, Texas. In addition, Seabrook Logistics is connecting its facility to Magellan's Houston crude oil distribution system by constructing a 24-inch (61-centimeter) diameter bi-directional pipeline between the Seabrook Logistics' facility and Genoa Junction and investing in a new Aframax dock with up to a 45-foot draft. The expansion is currently estimated to cost $250 million and be operational during mid-2018, subject to receipt of necessary permits and regulatory approvals.
Further, in anticipation of incremental volume on Magellan's Houston crude oil distribution system, Magellan is 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 also expected to be operational during mid-2018.
If warranted by market demand, Seabrook Logistics could construct an additional 3 million barrels (480,000 cubic meters) of storage, a second 24-inch diameter pipeline between the Seabrook Logistics' facility and Magellan's Houston crude oil distribution system and a second Aframax ship dock, which may be expanded to a Suezmax-capable ship dock. Subject to receipt of necessary permits and regulatory approvals, portions of these additional assets could be operational beginning late 2018.
Seabrook Logistics is currently in the final stages of constructing more than 700,000 barrels (111,000 cubic meters) of new crude oil and condensate storage and a new 18-inch (46-centimeter) diameter pipeline, which will connect to an existing third party pipeline to ultimately transport crude oil to a Houston-area refinery beginning in the first quarter of 2017. If the facility were fully built as proposed, Seabrook Logistics would provide deep-water access through two industry-standard Aframax docks with up to a 45-foot draft, more than 5 million barrels (795,000 cubic meters) of new storage capacity and pipeline connectivity with refineries and terminals throughout the Houston Ship Channel and Texas City.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 95 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About LBC Tank Terminals
LBC Tank Terminals is one of the largest global operators of bulk liquid storage facilities for chemical petroleum products and base oil products. LBC owns and operates a global network of terminals at key locations in the United States, Europe and China, while offering loading / unloading services for all modes of transportation. More information is available at www.lbctt.com.
Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. and LBC Tank Terminals, LLC believe any such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors associated with the project that may have a direct impact on its operating and financial results are: (1) the ability to obtain all required rights-of-way, permits and regulatory or other approvals on a timely basis; (2) price fluctuations and overall demand for crude oil and refined products; (3) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (4) the occurrence of an operational hazard or unforeseen interruption; and (5) willingness to incur or failure of customers or vendors to meet or continue contractual obligations. Additional information about issues that could lead to material changes in performance is contained in Magellan's filings with the Securities and Exchange Commission. The companies undertake no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.
SOURCE: Magellan Midstream Partners, L.P.Copyright 2016 PR Newswire. All Rights Reserved