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American Midstream sign lease for storage

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World Pipelines,

American Midstream Partners, LP, has announced the execution of a multiple year, fee based agreement with a major refinery customer to lease 650 000 bbls of storage capacity at the Harvey terminal. The partnership expects the total storage capacity at Harvey to increase to approximately 1.1 million bbls in 2016.

The partnership’s total storage capacity has increased by approximately 40%, or 500 000 bbls, since the acquisition of the terminals segment in 2013. The buildout of the Harvey terminal is ahead of expectations, increasing more than 100% in 2015 with the addition of 300 000 bbls of incremental storage capacity, all of which is leased under multiple year, firm storage contracts.

“We are excited to support our customer’s regional refining operations with incremental storage capacity additions at the Harvey terminal,” said Lynn Bourdon, Chairman, President and Chief Executive Officer. “The partnership’s strategic positioning in the Port of New Orleans combined with Blackwater’s exemplary safety record, outstanding customer service, and expertise in specialty chemical and petroleum product storage has contributed to a faster than expected buildout of the Harvey terminal.”

Harvey has 100 000 bbls of existing storage capacity that will be utilised for the new agreement, with construction of 550 000 bbls of incremental storage capacity currently underway. The partnership expects 450 000 bbls of storage capacity to be in service by mid 2016 and the remaining 200 000 bbls of storage capacity to be in service by late 2016. The partnership’s initial 2016 guidance announced in November 2015, including adjusted EBITDA and capital expenditure guidance, includes the incremental storage capacity announced.

The Harvey terminal is located on 56 acres on the west bank of the Mississippi River in the Port of New Orleans and equipped to handle a wide variety of petroleum and chemical products. Harvey is a full service storage site, including 3000 ft of rail track that can accommodate up to 50 cars, a two bay semi-automated truck loading facility, and a deepwater shipdock allowing for product transfers via ship, barge, railcar, and/or tank truck. When fully developed, Harvey has the potential to provide up to 2 million bbls of storage capacity.

American Midstream’s terminal operations consist of approximately 1.8 million bbls of storage capacity across three marine terminal sites located in Westwego, Louisiana; Brunswick, Georgia; and Harvey, Louisiana. The facilities are equipped to store a range of petroleum, chemical and agricultural products. Terminal operations are managed by Blackwater Midstream, a wholly owned subsidiary of the partnership.

Adapted from press release by Francesca Brindle

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