Magellan Midstream Partners LP (NYSE: MMP) and Royal Vopak (NYSE Euronext Amsterdam: VPK) are jointly assessing the development of a deepwater storage and handling facility in the Houston Gulf Coast area.
Under a recently signed joint development agreement, the parties will engage in a feasibility study for a new storage terminal along the Houston Ship Channel to store and handle crude oil, refined products and ethanol. The proposed deepwater tank storage terminal would be located on land currently owned by Vopak in Deer Park, Texas, and would consist of tank terminal infrastructure including a range of tanks, barge and ship docks facilitating high speed loading rates. In addition, the strategic location along the Houston Ship Channel is characterized among others by maximum draft (45 feet), rail access (including unit train capability), automatic truck loading facilities, and connectivity to Magellan's refined products and crude oil pipeline systems.
Magellan currently owns 20 million barrels (3.3 million cubic meters, or cbm) of storage capacity in the Houston area, including its Galena Park and East Houston terminals, and a pipeline system to deliver crude oil to and throughout the Houston Gulf Coast area.
Vopak currently owns 8 million barrels (1.3 million cbm) of storage capacity in the Houston area, providing storage and handling services predominantly for the chemical industry, including its Galena Park and Deer Park terminals, as well as the 130 acres and associated dock location targeted for this expansion project.