Called Seabrook Logistics, the JV will construct assets, including over 700,000 barrels of new crude oil storage and other distribution infrastructure adjacent to LBC’s existing terminal in Seabrook, Texas, US.
The new company will also build new $95m pipeline, to transport crude oil to a Houston-area refinery. The pipeline will connect the new storage to an existing third party pipeline.
As part of an agreement, the JV will use LBC’s dock and two barge docks. This will provide marine access with flexible loading and unloading services at the Seabrook facility.
Magellan president and CEO Michael Mears said: "Magellan is excited about developing a new project with LBC in the Houston market to provide a cost efficient and reliable option to store, transport and distribute crude oil along the Gulf Coast.
"We also see growth opportunities at this new facility through the potential connection and integration of this terminal into Magellan’s Houston crude oil and refined products pipeline systems."
Magellan will commission the new pipeline, while LBC will manage construction and operations of the new storage tanks and other terminal assets.
The storage facility and pipeline infrastructure are scheduled to be commissioned in the first quarter of 2017.
