Magellan to start Seabrook Suezmax dock in September

Magellan Midstream Partners will start service in September on a new dock that can load Suezmax vessels at its Seabrook terminal in Texas.

The company previously said that it would start the Suezmax dock in mid-2020.

The Seabrook terminal is a joint venture (JV) with LBC Tank Terminals. The companies are adding 750,000 bl of storage at the facility which is planned to be in service in early 2021.

Seabrook already has 3.2mn bl of crude storage and an Aframax dock with 300,000 b/d of capacity.

Magellan's exports of crude have increased in the second quarter compared with the first quarter, chief executive Michael Mears said today at the JP Morgan Energy, Power and Renewables conference. Magellan does not release specific volumes.

Crude exports should continue at a steady rate "in the foreseeable future" until the end of the year, Mears said.

Overall US crude exports have been fairly resilient in the face of the Covid-19 pandemic which caused a plummet in global oil demand. The latest monthly trade data from the US Census shows that US crude exports fell by 13pc in April compared to the previous month, but stayed above 3mn b/d. Weekly estimates by the Energy Information Administration put crude exports above 3mn b/d in May, but down to about 2.5mn b/d so far in June.

Another major US midstream company -- Enterprise Products Partners – said yesterday that its exports of natural gas liquids (NGLs), refined products and crude have been steady in recent months despite the pandemic.

By Eunice Bridges