Previously, Kinder Morgan was deciding between heavy black oil or distillates for Phase 3 of its BOSTCO project.

“The market seems to be very strong … we’re looking at expansion and a further expansion at our Pasadena and Galena Park on the gasoline side and strong demand on distillates as well specifically on the export side,” Kinder said during the company’s recent earnings conference call.

He did not offer any details on the storage capacity for Phase 3.

BOSTCO has commissioned its 49th of 51 tanks last week, and Phase 1 is to be completely on line by the end of the second quarter.

Phase 2 of construction at BOSTCO is underway and involves the construction of an additional six, 150,000-bbl, ultra-low-sulfur diesel tanks, additional pipeline connectivity and high-speed loading at a rate of 25,000 bbl per hour.

BOSTCO expects Phase 2 to begin service in the fourth quarter of 2014.

Upon full project completion, BOSTCO is to offer 6.2 million bbl of storage for black oil and 900,000 bbl for ULSD.

The approximately $520 million BOSTCO terminal is fully subscribed for a total capacity of 7.1 million bbl and is able to handle ultra-low-sulfur diesel, residual fuels and other black oil terminal services.

BOSTCO terminal began its first commercial operations in October 2013. Kinder Morgan owns 55% of and operates BOSTCO.

The company has started site work on the 42-acre site along the Houston Ship Channel for construction of a new ship dock to handle ocean-going vessels and 1.5 million barrels of liquids storage tanks.

The approximately $172 million project is supported by a long-term contract with a major ship channel refiner to construct the tanks and add connectivity to Kinder Morgan’s Galena Park terminal and to the refiner’s location.

Tank construction is scheduled to begin in the second quarter of 2014, and the project is expected to be in service in the second quarter of 2016.