June 30, 2015 [OPIS] - Magellan Midstream Partners and LBC Tank Terminals said on Monday that they have formed a 50/50 limited liability joint-venture company, Seabrook Logistics (JV), to own and operate crude oil storage and pipeline infrastructure in the Houston Gulf Coast area.
The assets to be constructed and owned by the JV include over 700,000 bbl of new crude oil storage and other distribution infrastructure located adjacent to LBC’s existing terminal in Seabrook, Texas.
In addition, the JV will construct and own a new 18-inch diameter pipeline, which will connect the new storage to an existing third-party pipeline that will transport crude oil to a Houston-area refinery.
An agreement has also been executed to allow the JV to utilize LBC’s dock suitable for industry standard Aframax vessels with up to a 45-foot draft and two barge docks, which will provide efficient marine access with flexible loading and unloading services at the Seabrook facility.
The project is currently estimated to cost approximately $95 million and is supported by a long-term storage and transportation commitment with a major refiner.
Magellan will be responsible for constructing, maintaining and operating the new pipeline, and LBC will be responsible for constructing, maintaining and operating the new storage tanks and other terminal assets.
Subject to the receipt of permits and regulatory approvals, the new storage facility and pipeline infrastructure are expected to be operational in the first quarter of 2017.
