August 6, 2018 [PR Newswire] - Magellan Midstream Partners, L.P. and LBC Tank Terminals, LLC are further expanding the infrastructure of Seabrook Logistics, LLC, owned 50/50 by subsidiaries of Magellan and LBC, by increasing Seabrook Logistics' crude oil and condensate storage and dock capabilities in the Houston Gulf Coast area.
Seabrook Logistics plans to construct nearly 700,000 barrels (111,000 cubic meters) of additional crude oil and condensate storage in Seabrook, Texas as well as a new Suezmax dock with up to a 45-foot draft (14 meters) and approximately 400,000 barrels per day (“bpd”) of dock capacity.
Following completion of today’s announced expansion, Seabrook Logistics will own approximately 3.1 million barrels (490,000 cubic meters) of storage, deep water access through an Aframax dock and a Suezmax dock and connectivity to Magellan’s Houston crude oil distribution system, providing it access to multiple inbound crude oil pipelines.
This latest expansion is estimated to cost approximately $120 million, shared equally by Magellan and LBC, and is expected to be operational by late 2019, subject to receipt of all permits and approvals.
“With increased crude oil production in the Permian Basin and other prolific regions, demand for crude oil storage and export capabilities continues to grow in the Houston Gulf Coast area,” said Michael Mears, Magellan’s chief executive officer. “We are pleased to expand our services to meet this growing industry need.“
“With the expansion of the Panama Canal and the growing role of the U.S. in increased flows of oil, this is an important development for our project and for the success of our customers,” said John Grimes, LBC’s group chief operating officer. “Seabrook Logistics is committed to providing our customers with industry-leading infrastructure and service and this is another step in that direction.”
Export capabilities recently commenced for Seabrook Logistics, which currently operates 2.4 million barrels (380,000 cubic meters) of crude oil and condensate storage and an Aframax dock with up to a 45-foot draft (14 meters) and 300,000 bpd of dock capacity. The Seabrook Logistics’ facility is also connected to Magellan’s Houston crude oil distribution system via a new 24-inch (61-centimeter) diameter bi-directional pipeline.
If the facility were fully built out, Seabrook Logistics would have up to 5.5 million barrels (870,000 cubic meters) of storage capacity and a total dock capacity of at least 700,000 bpd, with options to further increase dock throughput capacity.
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