Magellan Midstream Partners LP and LBC Tank Terminals LLC entered into a letter of intent (LOI) to expand Seabrook Logistics LLC’s crude oil and condensate storage, marine capacity and pipeline infrastructure in the Houston Gulf Coast area, the companies said May 31.

Seabrook is owned 50:50 by Magellan and LBC. Seabrook Logistics will construct up to 4 million barrels (MMbbl), or 636,000 cubic meters (Mcm), of additional storage, totaling about 5 MMbbl or 795 Mcm, adjacent to LBC's terminal in Seabrook, Texas.

Seabrook Logistics will connect this storage to Magellan's Houston crude oil distribution system with 24-inch diameter pipelines, which will be constructed.

The company will also construct one ship dock in addition to the recently constructed ship dock and two barge docks. Aframax vessels with 45-ft drafts will load and unload at Seabrook Logistics’ facility from these docks.

The proposed expansion, which was approved by Magellan and LBC’s boards of directors, is subject to receipt of necessary permits, regulatory approvals and completion of binding agreements.

A portion of the additional new storage and pipeline assets could be operational by the end of 2017.

Seabrook Logistics is currently building infrastructure adjacent to LBC's Seabrook facility, including more than 700 Mbbl or 111 Mcm of new crude oil storage, and a new 18-inch diameter pipeline that will connect to an existing third party pipeline to transport crude oil to a Houston-area refinery.

Magellan Midstream Partners LP is based in Tulsa, Okla.