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Nov. 6, 2013 /PRNewswire/ --
Oiltanking Partners, L.P. (NYSE: OILT) (the "Partnership") today announced that the board of directors of its general partner has approved approximately
$200 million of additional crude expansion projects.
The Partnership intends to construct two new crude oil pipelines connecting its
Houston terminal with Crossroads (sometimes referred to as Moore Road) Junction, a critical distribution point for the
Houston market, for a total cost of approximately
$98 million. Our expansion projects will include a new 24-inch pipeline to Crossroads Junction that will give our terminal customers access to the origination point of Shell Pipeline's
Houma pipeline (the "HoHo Pipeline"), which is scheduled to transport crude oil from the
Houston area eastbound to refining centers in
Louisiana. The Partnership also intends to construct a new 36-inch pipeline to Crossroads Junction that will give our terminal customers access to the termination point of TransCanada Corporation's Gulf Coast Pipeline from
Cushing, which is expected to connect to the Keystone XL pipeline if approved and constructed.
Anne-Marie Ainsworth, President and CEO, stated, "These projects will be a further extension of our unmatched crude network in the
Houston market. The new pipelines will provide our customers additional inbound and outbound connections to our crude storage hub, thereby driving higher throughput volumes and demand for incremental crude storage at our facilities."
The Partnership also announced a new phase of construction at our Appelt facility to add a total of 3.5 million barrels of new storage for a total cost of approximately
$101 million. The storage will be built in two phases. The largest component, which is named Appelt III, will include 3.1 million barrels of storage and a new manifold on 26 acres of land adjacent to our existing Appelt II facility. In addition, we will construct a new 390,000 barrel storage tank that we expect to be completed before Appelt III is in service. Upon completion of these projects, the total storage capacity at our Appelt property will be nearly 10 million barrels.
"The additional storage capacity at our Appelt facility represents the fourth phase of our extensive infrastructure expansion program. As with our prior projects, this latest expansion is designed to address continuing robust demand for additional crude storage capacity from both existing and potential new customers," explained Ms. Ainsworth. "With these exciting new projects, we have now announced more than
$500 million of capital investments to expand our connectivity and storage capacity since our initial public offering in
The 24-inch Crossroads pipeline is expected to be completed by the end of 2014, and the 36-inch Crossroads pipeline is expected to be completed by the end of the first quarter of 2015.