Boston, MA 06/09/2014 (wallstreetpr) – Phillips 66 (NYSE:PSX) agreed to purchase its largest storage capacity terminal near Beaumont, Texas.
The logistics and energy manufacturing company announced its plan to buy a 7.1 million barrel capacity near Beaumont, which will be the company’s biggest terminal in its portfolio. Phillips 66 (NYSE:PSX) President, Tim Taylor, said that the move supports the company’s midstream enhancement plan. He said that the company seeks to increase volumes of crude oil movements from North America to Gulf Coast areas with an increase in exports of refined products. Considering this strategy, the new terminal is expected to be aptly positioned as it would not only allow serving the growing market, but also provide growth potential.
The Beaumont storage capacity terminal is strategically positioned on the U.S. Gulf Coast and makes deep water accessible. With this new terminal, Phillips 66 (NYSE:PSX) intends to serve its own refineries and also those on the U.S. Gulf Coast. It also provides multiple interconnections major refined product and crude oil pipelines which are capable of serving as many as 3.6 million barrels a day. The terminal has a storage capacity of 4.7 million barrels of crude oil and 2.4 million barrels of refined product. It also has two marine docks which have the potential to manage Aframax tankers and an additional barge dock as well. In addition to all this, the terminal also offers truck and rail loading as well as unloading facilities.
Currently belonging to Chevron Corporation (NYSE:CVX)’s member UNOCAL, the terminal is at a distance almost 60 miles or 96 kilometer from Phillips Westlake, Louisiana, the company’s nearest refinery, which holds a capacity of 239,400 barrels a day. The transaction, with which the company expects to boost its transportation and logistics assets, is anticipated to complete by the end of the third quarter of 2014, after regulatory approvals are received. The company has not yet disclosed the terms of the agreement.