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Magellan and LBC expanding Seabrook Logistics'

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Hydrocarbon Engineering,


Magellan Midstream Partners, L.P. (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 bbls (270 000 m3) 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 in. (61 cm) diameter bi-directional pipeline between the Seabrook Logistics' facility and Genoa Junction and investing in a new Aframax dock with up to a 45 ft draft. The expansion is currently estimated to cost US$250 million and be operational during mid-2018, subject to receipt of necessary permits and regulatory approvals.

Furthermore, in anticipation of incremental volume on Magellan's Houston crude oil distribution system, Magellan is enhancing its infrastructure by separately investing an additional US$70 million to build a new 24 in. 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 bbls (480 000 m>sup>3) of storage, a second 24 in. 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 bbls (111 000 m3) of new crude oil and condensate 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 beginning in the first quarter of 2017 (1Q17). If the facility were fully built as proposed, Seabrook Logistics would provide deepwater access through two industry standard Aframax docks with up to a 45 ft draft, more than 5 million bbls (795 000 m3) of new storage capacity and pipeline connectivity with refineries and terminals throughout the Houston Ship Channel and Texas City.

Read the article online at: https://www.hydrocarbonengineering.com/refining/07122016/magellan-and-lbc-expanding-seabrook-logistics/


 

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