The company will be responsible to construct two new crude oil pipelines in Houston Ship Channel and one million barrels of new crude oil storage capacity at the OP’s Houston terminaling facility.
The scope of work includes reversal of an existing 24-inch pipeline that currently 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.
It also includes construction of a new 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 one million barrels of crude oil storage at the Partnership’s Houston terminaling facility.
The phase one of the expansion project is estimated to cost $80-85m and is expected to accommodate additional customer demand at Oiltanking Houston.
The company has secured environmental and internal approvals to begin construction, which is expected to be complete by 2013.
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