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Mar 1, 2002 12:00 PM

Oiltanking Houston LP is divesting its 50% share in the Pasadena TX Colex injection terminal to partner Equilon Enterprises LLC. This transaction will result in Equilon owning Oiltanking's Pasadena products tanks and pipelines that since 1999 had been included in a 50/50 partnership with Equilon. The joint terminal has 2.4 million barrels of storage capacity.

This terminal is connected to every Texas Gulf Coast refinery and every major outbound products pipeline, in particular Colonial and Explorer (Colex). Mutual longterm commercial contracts for cooperation in pipeline services (including Colex access from Oiltanking's Houston terminal) and marine services are connected with the transaction.

The sale is consistent with Oiltanking Houston's strategy of focusing on the core strength of its remaining facilities at the Houston Ship Channel: marine movements of bulk liquids such as refinery feedstocks, petrochemical feedstocks, gases, bulk marine chemicals, and mineral oil products, storage and transshipment in all transport modalities.