New Oil Terminal for Houston Ship Channel

Magellan Midstream Partners has announced plans to construct a new high-capacity marine terminal along the Houston Ship Channel in Pasadena, Texas, to handle refined petroleum products, including various grades of gasoline and diesel fuel and renewable fuels. The new terminal will be built on nearly 200 acres of recently-acquired land.

Magellan initially plans to build approximately one million barrels of refined products and ethanol storage and a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft. Magellan is also constructing a 36-inch pipeline between the partnership’s existing Galena Park, Texas terminal and this new Pasadena terminal to enhance connectivity and distribution options for both facilities. 

In addition, Magellan is connecting its existing 18-inch Texas City-to-Pasadena pipeline to the new facility. Magellan is developing opportunities for additional connections to third-party refineries, pipelines and terminals within the Gulf Coast region.

The project is currently estimated to cost approximately $335 million, including the acquisition of land. Subject to receipt of necessary permits and regulatory approval, Magellan expects its new Pasadena terminal to be operational in early 2019.

If warranted by additional demand, the new Pasadena facility could be expanded to include up to 10 million barrels of storage and up to five docks, including the potential for Aframax-sized vessels with a draft up to 45 feet.

Last year, Magellan announced expansion of its Galena Park, Texas terminal including construction of a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft. Magellan expects the connectivity between Galena Park and the Houston distribution system to be operational by the end of 2016 and the new dock to be fully operational by the end of 2018.