Magellan, LBC to expand Seabrook capacity

03.06.16. Magellan Midstream Partners and LBC Tank Terminals have entered into a letter of intent for Seabrook Logistics, LLC, owned 50/50 by Magellan and LBC, to expand its crude oil and condensate storage, marine capacity and pipeline infrastructure in the Houston Gulf Coast area.
Seabrook Logistics proposes to construct up to 636,000 cbm of additional storage for a total of nearly 795,000 cbm adjacent to LBC’s existing terminal in Seabrook, Texas.
Furthermore, Seabrook plans to connect this storage to Magellan’s Houston crude oil distribution system with planned 61cm diameter pipelines. Seabrook also intends to construct one ship dock in addition to the recently constructed ship and two barge docks. Both ship docks will be able to handle Aframax vessels with draft up to 13.7m.
The proposed expansion, which has been approved by the board of directors of both Magellan and LBC, is subject to receipt of necessary permits, regulatory approvals and completion of binding agreements. A portion of the additional new storage and pipeline assets could be operational by the end of 2017.
Seabrook is currently in the process of building infrastructure adjacent to LBC’s existing facility, including over 111,000 cbm of new crude oil storage and a new 46cm diameter pipeline, which will connect to an existing third party pipeline to ultimately transport crude oil to a Houston-area refinery.