A major refinery has signed an agreement with American Midstream Partners to lease 650,000 barrels of storage capacity at its Harvey Terminal.
This will bring total storage capacity at the facility in the Port of New Orleans to around 1.1 million barrels in 2016.
The expansion of the facility is ahead of expectations, increasing by more than 100% in 2015 with the addition of 300,000 barrels of incremental storage capacity. All of this has been leased under multi-year, firm storage contracts.
Since the acquisition of the terminals segment in 2013, capacity has increased by 40%.
Lynn Bourdon, chairman, president and CEO, says: ‘We are excited to support our customer’s regional refining operations with incremental storage capacity additions at the Harvey terminal.
‘The partnerships strategic positioning in the Port of New Orleans combined with Blackwater’s exemplary safety record, outstanding customer service, and expertise in specialty chemical and petroleum product storage has contributed to a faster than expected buildout of the Harvey terminal.’
The terminal currently has 100,000 barrels of existing storage capacity that will be utilized for the new agreement, with construction of 550,000 barrels of incremental storage capacity currently underway.
A total of 450,000 barrels of storage capacity is expected to be in service by mid-2016 and the remaining 200,000 barrels to be in service by late 2016.