Oiltanking Partners on Monday announced a $104 million expansion project to construct approximately 3.2 million bbl of new crude oil storage capacity at its Houston terminal facility.
The project scope includes the purchase of 95 acres of nearby land for approximately $12 million, on which the new capacity will be located, according to the company.
The incremental land purchase can also accommodate the construction of an additional 3 million bbl of storage capacity to meet future need, the company said.
"As expected, the dramatic increase in domestic crude oil production has created a growing need for storage capacity by oil producers and marketers attracted to premium Gulf Coast crude oil pricing and our local refinery customers, said Carlin G. Conner, president and CEO.
This new project is the second phase of our infrastructure and storage expansion to address the robust demand from both existing and new customers and is supported by new long-term storage contracts, he added.
All environmental and internal approvals required to commence construction are in place, and the additional storage capacity is expected to be placed into service in the fourth quarter of 2013, the company said.
Once complete, the new storage capacity will bring total active storage capacity for the company to approximately 22 million bbl.