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Magellan Midstream to build $335M marine terminal in Houston Ship Channel

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Magellan Midstream to build $335M marine terminal in Houston Ship Channel

said itplans to build a marine terminal for refined petroleum products along the HoustonShip Channel in Pasadena, Texas.

The projectwould include about 1 million barrels of refined products and ethanol storage anda marine dock for barges with up to a 40-foot draft, according to a July 14 newsrelease. The storage capacity is expandable to up to 10 million bbland the terminal may include up to 5 docks for vessels with up to a 45-foot draft,if there is additional demand.

Magellan saidit will build a 36-inch pipeline that would run from its Galena Park, Texas, terminalto the new Pasadena marine terminal. The new terminal would also be connected tothe partnership's existing Texas City-to-Pasadena pipeline, and potentially to otherthird-party refineries, pipelines and terminals in the Gulf Coast.

The project,supported by long-term contracts, would handle products such as various grades ofgasoline and diesel fuel and renewable fuels.

The estimatedcost of the project is about $335 million, including the acquisition of about 200acres of land. If approved, the terminal is expected to begin operations by early2019.