TULSA, Okla. and MECHELEN, Belgium, Aug. 1, 2018 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) ("Magellan") and LBC Tank Terminals, LLC ("LBC") are further expanding the infrastructure of Seabrook Logistics, LLC ("Seabrook Logistics"), 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.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About LBC Tank Terminals
LBC Tank Terminals is one of the largest global operators of bulk liquid storage facilities for chemical petroleum products and base oil products. LBC owns and operates a global network of terminals at key locations in the United States, Europe and China, while offering loading / unloading services for all modes of transportation. More information is available at www.lbctt.com.
Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. and LBC Tank Terminals, LLC believe such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors associated with the project that may have a direct impact on its operating and financial results are: (1) the ability to obtain all required rights-of-way, permits and regulatory or other approvals on a timely basis; (2) price fluctuations and overall demand for crude oil and refined products; (3) changes in tariff rates or other terms as required by state or federal regulatory authorities; (4) the occurrence of an operational hazard or unforeseen interruption; and (5) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to this expansion. Additional information about issues that could lead to material changes in performance is contained in Magellan's filings with the Securities and Exchange Commission. Forward-looking statements made in this release are based only on information currently known, and the companies undertake no obligation to revise these forward-looking statements to reflect events or circumstances learned of or occurring after today's date.