December 7, 2017 [Rebusiness Online] - A joint venture between Valero Energy Corp. and Magellan Midstream Partners has started construction of Phase I of an $820 million marine storage facility located along the Houston Ship Channel in Pasadena.
The facility will handle petroleum products including multiple grades of gasoline, diesel and jet fuel, as well as renewable fuels. Phase I of the development will include 1 million barrels of storage and a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft.
Phase II of the development will expand the property to include 4 million barrels of storage, a three-bay truck rack and a second marine dock capable of handling Aframax-sized vessels with up to a 45-foot draft.
If warranted by additional demand, the property offers a third expansion option to include an incremental 5 million barrels of storage, another three docks and expanded truck-loading capacity for a maximum footprint of up to 10 million barrels of total storage and up to five docks.
At completion, the facility will be connected via pipeline to Valero refineries in Houston and Texas City. The property will also link to the Colonial and Explorer pipelines, as well as Magellan’s Galena Park terminal facility.
A limited liability company that is owned by Magellan and Valero Terminaling and Distribution Co., a wholly owned subsidiary of Valero, will own the property upon completion.
Magellan currently serves as construction manager, and will serve as operator once construction is complete. Phase I of the new terminal is expected to be operational in early 2019, with Phase II slated for completion in early 2020. Magellan and Valero are funding the development through equal capital contributions.
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