Oiltanking Partners to go ahead with expansion at Texas terminal

12 June 2014 17:54 Source:ICIS News

HOUSTON (ICIS)--Oiltanking Partners will go ahead with an expansion project to build new crude oil storage, pipelines and dock infrastructure at its terminal in Beaumont, Texas, the energy logistics firm confirmed on Thursday.

The $340m multi-phase expansion project involves 6.2m bbl of additional storage capacity, bringing capacity at Oiltanking’s Beaumont terminal to 11.7m bbl. The first tanks from the expansion are expected to be ready in the third quarter of 2015.

Oiltanking added that the project’s initial phase was supported by customer commitments and that "the partnership has received strong commercial interest in storage commitments with other potential customers that exceed the remaining project capacity".

The expansion project will help Oiltanking meet growing demand from customers in Texas's Beaumont-Port Arthur market. That market currently has a refining capacity of 1.5m bbl/day, the company said.

Houston-based Oiltanking Partners is organised as a master limited partnership (MLP). Its general partner is German energy and chemicals logistics major Oiltanking Group.

By Stefan Baumgarten