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Royal Vopak and Magellan Midstream Partners, L.P. have announced that they are jointly assessing the development of a deep water storage and handling facility in the Houston Gulf Coast area.

Under a recently signed joint development agreement, the parties are due to engage in a feasibility study for a new storage terminal along the Houston Ship Channel to store and handle crude oil, refined products and ethanol.

The proposed deep water tank storage terminal would be located on land currently owned by Vopak in Deer Park, Texas and would consist of tank terminal infrastructure including a range of tanks, barge and ship docks facilitating high-speed loading rates.

The strategic location along the Houston Ship Channel is characterized, amongst others, by maximum draft (45 feet), rail access (including unit train capability), automatic truck loading facilities and connectivity to Magellan’s refined products and crude oil pipeline systems.

Vopak currently owns 1.3 million cubic meters (8 million barrels) of storage capacity in the Houston area, providing storage and handling services predominantly for the chemical industry, including its Galena Park and Deer Park terminals, as well as the 130 acres and associated dock location targeted for this expansion project.

Magellan owns 3.3 million cubic meters (20 million barrels) of storage capacity in the Houston area, including its Galena Park and East Houston terminals, and a comprehensive pipeline system to deliver crude oil to and throughout the Houston Gulf Coast area.