Crude Summit: Magellan seeks Seabrook oil export

Magellan Midstream Partners is looking to expand its terminal partnership on Texas' Galveston Bay to include crude exports, a bid to offer the service outside of the congested Houston Ship Channel a few miles upstream.

Chief executive Mike Mears, speaking on the sidelines of the Argus Americas Crude Summit today, said Magellan is working to sign up export customers as quickly as possible to its Seabrook Logistics terminal project, which involves 700,000 bl of storage in place early next year in partnership with LBC Tank Terminals.

The 50:50 joint venture includes an 18-inch pipeline connected to the Genoa Junction hub onshore to LBC's dock at Seabrook, which lies south of the Houston Ship Channel where Magellan and Enterprise operate existing oil docks.

Magellan will build and maintain the pipeline and LBC will build and maintain the shell storage. LBC's facilities can accept Aframax vessels and has two barge docks.

"I think there is an opportunity to get outside the Ship Channel and avoid that congestion," Mears said.