Seabrook Logistics, a limited liability company formed from a joint venture (JV) between Magellan Midstream Partners LP and bulk liquids storage operator LBC Tank Terminals LLC, will own and operate Houston Gulf Coast-area crude oil storage and pipeline infrastructure, Magellan said June 29.
More than 700,000 barrels of crude oil storage capacity and other infrastructure will be built. A new, 18-inch pipeline will connect the new storage to a third-party pipeline carrying crude to a Houston refinery.
The new storage will be next to LBC’s terminal in Seabrook, Texas. LBC’s dock will be used; it can handle industry-standard Aframax vessels with 45-foot drafts, and there are two barge docks.
Seabrook Logistics’ crude oil storage and pipeline will cost about $95 million, supported by a long-term commitment with a major refiner. Magellan will construct, maintain and operate the pipeline, and LBC will construct, maintain and operate the storage tanks and other terminal assets.
Subject to the receipt of permits and regulatory approvals, the project will be operational in first-quarter 2017.
Walter Wattenbergh, LBC's CEO, said the project is an important part of the company’s growth strategy.
Magellan Midstream Partners LP is based in Tulsa, Okla.
Recommended Reading
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
EQT to Cut Workforce 15% Following Close of Equitrans Acquisition
2024-10-02 - EQT Corp. closed its $5.5 billion all-stock buy of Equitrans Midstream Corp. on Sept. 22.
Quantum’s VanLoh: New ‘Wave’ of Private Equity Investment Unlikely
2024-10-10 - Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.