Terminal Company Planning New Storage Tanks on Houston Ship Channel

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Houston Fuel Oil Terminal Company (Houston, Texas) is planning to expand its crude oil handling and storage capacity at its Channelview, Texas, storage terminal. Houston Fuel Oil is in contract negotiations and will make a final production decision in August of 2004. The size of the expansion will be determined at that point, as well. As of now, the scope of the expansion could include from two to four new 300,000 - 350,000 barrel capacity crude oil storage tanks, or more. The tanks will be designed to store sour crude oil to be used as either a straight refinery feedstock, or as a blending stock to mix with more expensive crude stocks in order to create a consistent feedstock. A refiner's ability to use a cheaper feedstock will add to its margin, in turn.

If Houston Fuel Oil makes a positive production decision, then construction on the new tanks could begin as early as late 2004 or early 2005 with completion targeted for mid-2005. Houston Fuel Oil's Channelview storage terminal is the Gulf Coast's largest black-oil facility, and has been in operation since 1979. It exclusively handles and blends crude and residual oil for carbon black manufactures, refineries, bunker suppliers, and fuel traders.

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