January 7, 2016 [OPIS] - American Midstream Partners said that it has executed a multi-year, fee-based agreement with a major refinery customer to lease 650,000 bbl of petroleum products and chemical storage capacity at the Harvey terminal in the port of New Orleans, La.
American Midstream did not identify the refiner. Several refiners, including Chalmette, Valero, Marathon Petroleum, Phillips 66 and Motiva, are located near New Orleans.
The partnership expects total storage capacity at Harvey to increase to about 1.1 million bbl in 2016.
The partnership’s total storage capacity has increased by approximately 40%, or 500,000 bbl, since the acquisition of the terminals segment in 2013.
The buildout of the Harvey terminal is ahead of expectations, increasing more than 100% in 2015 with the addition of 300,000 bbl of incremental storage capacity, all of which is leased under multi-year, firm storage contracts.
Harvey has 100,000 bbl of existing storage capacity that will be utilized for the new agreement, with construction of 550,000 bbl of incremental storage capacity currently underway.
The partnership expects 450,000 bbl of storage capacity to be in service by mid-2016 and the remaining 200,000 bbl of storage capacity to be in service by late 2016.
The partnership’s initial 2016 guidance announced in November 2015, including adjusted EBITDA and capital expenditure guidance, includes the incremental storage capacity announced today.
The Harvey terminal is located on 56 acres on the west bank of the Mississippi River in the Port of New Orleans.
Harvey is a full-service storage site, including 3,000 feet of rail track that can accommodate up to 50 cars, a two-bay semi-automated truck loading facility, and a deepwater shipdock allowing for product transfers via ship, barge, railcar and/or tank truck.
When fully developed, Harvey has the potential to provide up to 2 million bbl of storage capacity.
American Midstream’s terminal operations consist of approximately 1.8 million bbl of storage capacity across three marine terminal sites located in Westwego, La.; Brunswick, Ga.; and Harvey, La.
The facilities are equipped to store a range of petroleum, chemical and agricultural products.
Terminal operations are managed by Blackwater Midstream, a wholly owned subsidiary of the partnership.
