This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Oiltanking Partners Announces Crude Oil Expansion Project In Beaumont, Texas

HOUSTON, June 11, 2014 /PRNewswire/ --  Oiltanking Partners, L.P. (NYSE: OILT) (the "Partnership") today announced that the board of directors of its general partner has approved an expansion project to construct new crude storage, pipelines, and dock infrastructure at its terminal in Beaumont, Texas.  The multi-phase crude expansion will have a total capacity of up to 6.2 million barrels of storage at a total cost of approximately $340 million when all currently planned phases have been completed.  The initial phase of the project is fully supported by customer commitments.  In addition, the Partnership has received strong commercial interest in storage commitments with other potential customers that exceed the remaining project capacity.

The expansion project is designed to meet the growing needs of Oiltanking's customers in the Beaumont/ Port Arthur market.  This market currently has refining capacity of 1.5 million barrels per day.  In addition, several new long-haul pipelines, including the TransCanada Gulf Coast Project, Shell's Houston-to-Houma or "HoHo" Pipeline and the Port Arthur Extension of the Seaway Pipeline, have recently been completed or are under development.  As much as three million barrels of crude per day could flow to the Beaumont/ Port Arthur market once these and other pipeline projects are in service, driving strong demand for additional storage, pipeline connectivity and deep water access.

"We are very excited to be moving forward with the crude initiative in Beaumont," said Ken Owen, President and CEO.  "We believe the market opportunity there is similar to the one we saw a few years ago in Houston when we announced our Houston and Appelt terminal expansions.  As with those projects, we plan to provide the best-in-class connectivity, dock capabilities and service and reliability that our customers have come to expect from Oiltanking."

Based on current contracts, the Partnership expects to begin delivering initial tanks to customers during the third quarter of 2015, with the balance of the tanks coming online as they are completed through the first half of 2016.  Upon completion of the announced crude storage expansions, the Beaumont terminal is expected to have 11.7 million barrels of total capacity, bringing the Partnership's combined capacity to nearly 35 million barrels of storage.

The first phase cost includes required pipeline connections and manifold infrastructure, as well as the cost of constructing a new finger pier with two new deep water docks.  The new docks will be configured to load and unload crude and feedstocks at high rates to accommodate both the announced crude expansions and other growth opportunities.  The Beaumont crude expansions are expected to be accretive to distributable cash flow once operational.  In addition, it is expected that future potential expansions would utilize the newly constructed dock and pipeline infrastructure that will support this project.  The Partnership will provide additional information regarding the project during its Analyst Day on June 24, 2014.

Oiltanking Partners, L.P. is a growth-oriented master limited partnership engaged in independent storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas.  We are the logistics provider of choice to major integrated oil companies, distributors, marketers and chemical and petrochemical companies. Our core assets are strategically located along the Gulf Coast of the United States on the Houston Ship Channel and in Beaumont, Texas.  For more information, visit www.oiltankingpartners.com.

Forward-Looking StatementsThis press release contains forward-looking statements, including statements as to the Partnership's expectations for the expansion of its Houston terminals. These forward-looking statements reflect Oiltanking Partners' current views with respect to future events, based on what it believes are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties as described in Oiltanking Partners' filings with the Securities and Exchange Commission, available at the SEC's website at www.sec.gov. By issuing forward looking statements based on current expectations, opinions, views or beliefs, Oiltanking Partners has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contact Information:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs