TEPPCO Partners LP has signed an agreement with Motiva Enterprises for TEPPCO to construct and operate a new refined products storage facility to support the proposed expansion of Motiva's refinery in Port Arthur TX. Under terms of the agreement, TEPPCO will construct a 5.4-million-barrel refined products storage facility for gasoline and distillates. The agreement also provides for a 15-year throughput and dedication of volume, which will commence upon completion of the refinery expansion.
The project includes the construction of 20 storage tanks, five 3.5-mile product pipelines connecting the storage facility to Motiva's refinery, 15,000 horsepower of pumping capacity, and distribution pipeline connections to the Colonial, Explorer, and Magtex pipelines. The storage and pipeline project is expected to be completed in mid-2009.
As part of a separate but complementary initiative, the partnership will construct an 11-mile, 20-inch pipeline to connect the new storage facility in Port Arthur to its refined products terminal in Beaumont TX, which is the primary origination facility for the TEPPCO mainline system. This associated project will provide TEPPCO's current customers with connections to additional markets through the Colonial, Explorer, and Magtex pipeline systems and provide the Motiva refinery with access to the TEPPCO pipeline system.