Oiltanking Partners Announces 1st Phase Of Pipeline, Crude Storage Expansion

January 2012, Vol. 239 No. 1

Oiltanking Partners, L.P. has announced expansion projects including construction of two crude oil pipelines in the Houston Ship Channel and 1 million barrels of new crude oil storage capacity at the Partnership’s Houston terminaling facility.

The $80-85 million project is the first phase of anticipated infrastructure and storage capital expenditures to address additional customer demand at Oiltanking Houston.

The project includes the following scope:
• Reversal of an existing 24-inch pipeline that originates from Oiltanking Houston to multiple Houston Ship Channel refineries;
• Extension of the reversed 24-inch pipeline to connect to Genoa junction, located on the south side of the Houston Ship Channel;
• Construction of a 30-inch pipeline from Oiltanking Houston along the Houston Ship Channel to the area refineries previously served by the 24-inch pipeline; and
• Construction of 1 million barrels of crude oil storage at the Partnership’s Houston terminaling facility.

Additional long-haul pipeline systems are either in development or under construction to transport crude oil to the Houston market and supply the Gulf Coast refineries. Other pipelines are being built or reversed to deliver crude oil from Cushing and West Texas to Gulf Coast refineries and to alleviate the current oversupply situation in Cushing. The new project provides connectivity to Genoa junction and has been designed to accommodate additional customer throughput volumes as growing crude oil supplies reach the Houston Ship Channel market.

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