The project will result in a total of 12 million barrels of refined products storage with full bi-directional connectivity to the Colonial Pipeline mainline system, as well as other pipelines.
The project requires the expansion and reconfiguration of the storage facility to accommodate additional refined product capacity. There are currently two wells with a total capacity of four million barrels that are dedicated to refined products storage. The expansion project is targeted to initially add an additional eight million barrels of underground cavern storage for refined products service.
Mike Dowling, senior vice president of LDH Energy, said: Under the terms of the agreement, the LDH Energy connection at Mont Belvieu will have full Colonial Pipeline delivery and receipt capability for Colonial-specification refined products.
The agreement establishes LDH Energy’s facility as a Colonial Pasadena origin location and will allow customers to manage their Colonial inventories via physical movements on Colonial’s mainline and via in-well transactions with other customers at LDH Energy’s facility, as is currently done with propane.
