Magellan Midstream to Construct New Pasadena Marine Terminal Worth $335 Million
Magellan Midstream Partners, L.P. announced recently their plans that include constructing a new high-capacity marine terminal located in the Houston Ship Channel in Pasadena, Texas. It will handle all sorts of refined petroleum products, including various grades of gasoline and diesel fuel, and renewable fuels. This new terminal will be built on almost 200 acres of land that were recently acquired.
According to company’s official press release issued last week:
“Supported by a long-term customer commitment, Magellan initially plans to build approximately 1 million barrels 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 to enhance connectivity and distribution options for both facilities. 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.”
Estimates show this project will cost approx. $335 million (including cost of land acquisition). Depending on receiving all necessary permits and approvals, company expects their new Pasadena terminal to be operational in early 2019.
Michael Mears, chief executive officer said:
“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. We are pleased to expand our marine storage capabilities to meet the strong industry demand for both domestic and international exports while solidifying our strategic position as a key provider of storage and transportation services in the Gulf Coast region.”
With additional demand, this new facility could be further expanded and include up to ten million barrels of storage and up to five docks, and also has a potential for Aframax class vessels with a draft up to 45 feet.
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