August 8, 2017 [Platts] - SemGroup is adding a fifth dock and 1.45 million barrels of crude storage at its recently acquired Houston fuel oil and crude export facility, CEO Carlin Conner said Monday.
The additions are “backstopped by a long-term contract with a credit-worthy counterparty,” Carlin said on a conference call to discuss second quarter financial results.
SemGroup bought the Houston Fuel Oil Terminal Company in June from privately-held Alinda Capital Partners.
The HFOTCO facility currently comprises a 16.8 million-barrel storage terminal for residual fuel, crude oil and asphalt, with four ship docks and seven barge docks, three pipeline connections and a truck and rail loading and unloading facilities.
Of the total storage, nearly 65%, or 11 million barrels, is for storage of heated residual fuel, and the remaining 5 million barrels is for crude oil and asphalt.
In Louisiana, SemGroup said the Maurepas Pipeline crude line is operational and construction of the two product pipelines are complete.
The 24-inch crude line brings crude from the St. James, Louisiana, oil hub to Shell’s 225,800 b/d Norco refinery, also in Louisiana.
The two product lines will carry intermediates between Norco and Shell’s 227,586 b/d Convent, Louisiana, refinery. Financial contributions from the product lines will begin in September, Conner said.
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