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
The incremental land purchase can also accommodate the construction of an additional 3
million bbl of storage capacity to meet future need, the
"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