Monday, July 18, 2016

Magellan to Build New $335MM Marine Terminal Along Houston Ship Channel

Magellan Midstream Partners said on Thursday that its plans to construct a new marine terminal along the Houston Ship Channel in Pasadena, Texas, to handle refined petroleum products, including various grades of gasoline and diesel fuel and renewable fuels.

The project is currently estimated to cost approximately $335 million, including the acquisition of land.

Subject to receipt of necessary permits and regulatory approval, Magellan expects its new Pasadena terminal to be operational in early 2019.

The new terminal will be built on nearly 200 acres of recently acquired land.

Supported by a long-term customer commitment, Magellan initially plans to build approximately 1 million bbl of refined products and ethanol storage and a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft.

Magellan is also constructing a 36-inch pipeline between the partnership's existing Galena Park, Texas, terminal and this new Pasadena terminal.

In addition, Magellan is connecting its existing 18-inch Texas City-to-Pasadena pipeline to the new facility. Magellan is developing opportunities for additional connections to third-party refineries, pipelines and terminals within the Gulf Coast region.

"Demand for refined products export capabilities from the Gulf Coast continues to grow, and Magellan is well-positioned to take advantage of these opportunities due to our extensive pipeline and terminals network," said Michael Mears, chief executive officer.

If warranted by additional demand, the new Pasadena facility could be expanded to include up to 10 million bbl of storage and up to five docks, including the potential for Aframax-sized vessels with a draft up to 45 feet. 

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