Valero buys into Magellan's Houston products terminal
Houston, 14 September (Argus) — US independent refiner Valero is joining Magellan Midstream's development of a refined products export terminal on the Houston Ship Channel, which will be expanded.
Magellan already has begun building the first phase of the Pasadena facility, which it expects to open in early 2019 with 1mn bl of storage and a tanker dock handling gasoline, diesel, jet fuel and biofuels.
The expansion will add 4mn bl of storage, a three-bay truck rack and another dock capable of handling Aframax tankers, along with a connection to Valero's 160,000 b/d Houston and 220,000 b/d Texas City refineries. It will also have access to the Colonial and Explorer pipeline systems in addition to Magellan's own products system into the midcontinent.
The companies plan to spend about $820mn on the project combined, and both phases are contracted. Magellan is the construction manager and will be the operator.
The site can handle another 5mn bl of storage, three more docks and more truck loading capacity, the companies said.
Last week, the Magellan and Valero subsidiary V-Tex Logistics said they would jointly build a products pipeline connecting Houston-area refineries to central Texas, adding 85,000 b/d of capacity into the region by mid-2019.