Magellan Midstream Partners will construct a new high-capacity marine terminal along the Houston Ship Channel in Pasadena, Texas to handle refined petroleum products, including various grades of gasoline and diesel fuel, and renewable fuels. The new terminal will be built on nearly 200 acres of recently-acquired land.
Pipeline giant Magellan initially plans to build approximately 1m 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 ft draft. Magellan is also constructing a 36-inch pipeline between the partnership’s existing Galena Park, Texas terminal and this new Pasadena terminal. 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.
The project is currently estimated to cost approximately $335m, including the acquisition of land. Subject to receipt of necessary permits and regulatory approval, Magellan expects its new Pasadena terminal to be operational in early 2019.
“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,” said Michael Mears, chief executive officer.
If warranted by additional demand, the new Pasadena facility could be expanded to include up to 10m barrels of storage and up to five docks, including the potential for aframax-sized vessels with a draft up to 45 ft.
Magellan owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation’s refining capacity, and can store more than 95m barrels of petroleum products.
