Magellan Midstream Partners and Valero Energy are jointly expanding a Houston marine storage facility currently under construction.
The facility, along the Houston Ship Channel in Texas, will be owned by a limited liability company that is owned 50/50 by Magellan and Valero. It will initially include five million barrels of storage, truck loading facilities and two proprietary ship docks.
The first phase of the facility, comprising one million barrels of storage and a new marine dock, is currently being built.
It will now be expanded by an incremental four million barrels of storage, a three-bay tuck rack and a second marine dock capable of handling Aframax-sized vessels with up to a 45-foot draft. Once this expansion phase is complete, the Pasadena facility will be connected via pipeline to Valero's refineries in Houston and Texas City and the Colonial and Explorer pipelines, in addition to the already planned connection to Magellan's Galena Park terminal facility.
Both phases of the facility are estimated to cost $820 million and both are fully contracted with long-term customer commitments. The terminal will handle petroleum products, including multiple grades of petrol, diesel and jet fuel as well as renewable fuels.
The first phase is expected to be operational in early 2019, and phase two is expected to come on-line in early 2020.
Michael Mears, chairman, president and CEO of Magellan, says: 'Demand for refined products from the Gulf Coast continues to grow, and together, we are well-positioned to continue expanding our marine capabilities to meet this demand from both domestic and international markets.'
Additionally, if warranted by additional demand, the new facility could be expanded to include an incremental five million barrels of storage, another three docks and expanded truck loading capacity.
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