Battleground Oil Specialty Terminal Company (BOSTCO), comprising of Kinder Morgan Partners and TransMontaigne Partners, launched construction of a new black oil terminal facility on the Houston Ship Channel, dubbed as the BOSTCO Project, in December 2011.
Kinder Morgan Partners holds 55% interest in the project, while the remaining 45% interest is held by TransMontaigne Partners.
An expansion phase to the project was introduced in June 2013. Construction works for the expansion phase will commence in the second quarter of 2013. Initial operations for the first phase will commence in the third quarter of 2013, while the expansion phase is scheduled for completion in 2014.
The estimated investment on the first phase is $425m. The expansion phase will require a further investment of $54m.
The construction is being carried out by employing more than 700 local contractors. The terminal facility will employ 75 full-time employees when operational. The total storage capacity of the terminal will be 7.1 million barrels.
BOSTCO Project background
"Kinder Morgan Partners holds 55% interest in the project, while the remaining 45% interest is held by TransMontaigne Partners."
TransMontaigne Partners initially acquired 190 acres of undeveloped land on the Houston Ship Channel in November 2010 to build the terminal.
The design and permitting activities, including initial preparatory works for the project, were carried out in 2010 and early 2011.
The project site currently covers an area of about 185 acres of land and waterfront. The terminal on its commissioning will facilitate storage, blending and handling of residual fuel, feedstock, distillates and other black oils.
The products will be brought into the terminal via ships, barges and rail cars while exportation of the products will be done by ships and barges.
Black oil terminal construction on the Houston Ship Tunnel
The first phase of the project, which is currently underway, will witness the construction of 52 storage tanks that will have a combined capacity of 6.5 million barrels. It will also involve the construction of deep draft docks to enable the largest ships to access the channel. The sizes of the storage tanks will vary from 30,000 barrels to 320,000 barrels.
"The estimated investment on the first phase is $425m. The expansion phase will require a further investment of $54m."
The design incorporates the provision of high speed pumping rates of 25,000 barrels per hour for loading ships and dock line stripping systems. Dredging and marine construction activities will involve the construction of two ship docks and three barge docks with a capacity of handling up to 12 barges. The project will also provide a twin track rail siding to handle the unloading of products from 12 rail cars.
The two docks at the project site will be capable of handling large ships with a length of 1,000ft, a beam of 168ft, a draft of 45ft and displacement tonnage of 205,000 metric tonnes. An electrical substation, bridges and an office building will also be constructed as part of the project.
The expansion phase with a capacity of 900,000 barrels will add another six storage tanks, each with a capacity of 150,000 barrels. It will also include the installation and provision of ultra low sulphur diesel tanks, additional pipeline, a deepwater vessel dock access and high-speed loading facilities with a rate of 30,000 barrels per hour.
BOSTCO black oil terminal expansion
Future expansion at the terminal will encompass the second phase of the project. The second phase is expected to add 3.7 million barrels capacity, including new pipeline connectivity.
The terminal will also be served by Highways 225 and 146, and East Sam Houston Tollway in the near future. An additional ship dock will also be constructed, which will provide berthing for two ships and four more barge spots.
The capacity of the rail siding will also be increased to facilitate unloading activities for 30 rail cars. A truck rack to accommodate four trucks will also be provided.