Oiltanking Partners has expanded its terminal agreement with Enterprise Products Partners (EPP) of Texas to increase the exports of liquefied petroleum gas (LPG) at its terminal in Houston Ship Channel, Texas.
The current agreement is an extension of the deal signed in March 2013 and has a 50-year term beginning on 1 February 2014.
Oiltanking Partners general partner CEO and president Anne-Marie Ainsworth said that, with a 30-year relationship, the company is pleased about the next chapter with EPP.
"Together, we have repeatedly committed resources and added infrastructure to create America’s preeminent LPG export facility," Ainsworth said.
Under the extended deal, Oiltanking Partners will provide additional dock capacity to load LPG vessels and land for EPP to expand its export facility.
The company will also participate in margin sharing on all customer vessels loaded at the Houston facility.
The expanded terminal is expected to be completed by the end of 2015 and will have a total loading capacity of more than 16 million barrels per month.
Ainsworth said that completion of the company’s dock expansion projects will allow them to continue to meet existing customers’ needs, while providing additional dock capacity to EPP.
"The Partnership and Enterprise have also agreed to expand the exclusivity provision in the existing agreement to include the Gulf Coast. The new agreement, together with Enterprise’s announced infrastructure expansion, cements this facility’s position as the leading US LPG hub," Ainsworth added.
Oiltanking Partners is a publicly-traded transportation firm in the US.