Oiltanking Partners, L.P has approved $200 million of crude expansion projects. The Partnership intends to construct two crude oil pipelines connecting its Houston terminal with Crossroads (sometimes referred to as Moore Road) Junction, a critical distribution point for the Houston market, for $98 million.
The expansion will include a 24-inch pipeline to Crossroads Junction that will give terminal customers access to the origination point of Shell Pipeline’s Houston-to-Houma (HoHo Pipeline), which is to transport crude oil from the Houston area eastbound to refining centers in Texas and Louisiana.
The Partnership also intends to construct a 36-inch pipeline to Crossroads Junction that will give terminal customers access to the termination point of TransCanada’s Gulf Coast Pipeline from Cushing, which is expected to connect to the Keystone XL pipeline if approved and constructed.
The Partnership announced a new phase of construction at its Appelt facility to add a total of 3.5 million barrels of storage for $101 million. Upon completion the total storage capacity at Appelt will be nearly 10 MMbbls. The 24-inch Crossroads pipeline is expected to be completed by the end of 2014 and the 36-inch Crossroads pipeline in early 2015.