Oiltanking Partners To Beef Up Texas Crude Assets

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Oiltanking Partners LP announced that the board of directors of its general partner has approved an expansion project to construct new crude storage, pipelines, and dock infrastructure at its terminal in Beaumont, TX. The multi-phase crude expansion will have a total capacity of up to 6.2 million barrels of storage at a total cost of $340 million when all currently planned phases have been completed. The initial phase of the project is fully supported by customer commitments. In addition, the partnership has received strong commercial interest in storage commitments with other potential customers that exceed the remaining project capacity.
  Based on current contracts, the partnership expects to begin delivering initial tanks to customers during the third quarter of 2015, with the balance of the tanks coming online as they are completed through the first half of 2016. Upon completion of the announced crude storage expansions, the Beaumont terminal is expected to have 11.7 million barrels of total capacity, bringing the partnership’s combined capacity to nearly 35 million barrels of storage.
The Beaumont crude expansions are expected to be accretive to distributable cash flow once operational. In addition, it is expected that future potential expansions would utilize the newly constructed dock and pipeline infrastructure that will support this project.