August 09, 2013 [OPIS] - Oiltanking Partners LP said that it has placed into service the final 275,000 bbl tank of the four tank expansion at its 600 manifold location at the Houston crude oil terminal.
Oiltanking is a master limited partnership engaged in independent storage and
transportation of crude oil, refined oil products and liquefied petroleum gas. Its assets are located along the U.S. Gulf Coast.
OPIS notes that by the end of 2014, Oiltanking will have a total of 19.7 million bbl of storage capacity in Houston. Oiltanking storage terminal is located on the Houston Ship Channel at mile post 38 across from Shell’s Deer Park Refinery.
As of May 2013, Oiltanking Houston has 13 million bbl of operational storage capacity. Another 3.2 million bbl of new capacity will be added by the end of 2013, bringing the total new capacity for 2013 to 4.27 million bbl.
Oiltanking also said that during the beginning of the third quarter, it began operations at its new Appelt facility in Houston by placing into service the first three tanks, or a total of 1.2 million bbl of storage capacity.
When completed as expected at the end of 2013, Appelt Phase I will have 3.2 million bbl of storage.
The Appelt Phase II crude storage expansion project that Oiltanking announced during 2012 is expected to add an additional 3.3 million bbl of new storage capacity by the end of 2014, bringing the Partnership’s total storage capacity for both Houston and Beaumont to over 25 million barrels.
Oiltanking continues to expect its capital expenditures for the full year of 2013 to range between $135 million to $145 million as it executes on its previously announced growth projects.
Oiltanking’s second quarter 2013 net income rose to $29.5 million, or $0.61 per unit, an increase of 77.3% over second quarter 2012 net income of $16.6 million, or $0.41 per unit.
OPIS reported in May that the Houston crude storage market was heating up amid a growing influx of crude deliveries from Cushing, Okla., and West Texas to feed the Gulf Coast refinery hub.
Some logistics companies have already set in motion plans to add significant crude storage capacity in Houston, with Oiltanking Partners leading the charge to capitalize on the growing crude tank demand.
The other significant player adding new capacity is Enterprise Partners at ECHO terminal. Just outside of Houston, Sunoco Logistics is also expanding its crude logistics business at Nederland, which is located east of Houston.
