MPLX LP has acquired an eastern U.S. Gulf Coast export terminal from Pin Oak Holdings, LLC, for approximately $450m.
The terminal has a capacity of 4 million barrels of third-party leased storage capacity and a 120,000 barrels-per-day (bpd) dock. This facility has the capability to significantly expand its storage capacity to 10 million barrels and is permitted for construction of a second 120,000 bpd dock.
This growth potential is significant, as multiple pipelines and rail lines cross the property, and the terminal is positioned as an aggregation point for liquids growth in the region for both ocean-going vessels and inland barges. As the facility expands, this investment is expected to generate a mid-teens percent return.
The facility, which will be known as MPLX’s Mt. Airy Terminal, is strategically located on the Mississippi River between New Orleans and Baton Rouge, near nine lower-Mississippi refineries, including Marathon Petroleum Corporation’s Garyville refinery. The Mt. Airy facility can handle multiple refined products, as well as residual fuel and bunker products to provide optionality and flexibility of feedstocks and finished products in a single location.
For more information visit: www.mplx.com
1st October 2018
