CUSHING, Okla. - SemCrude, a subsidiary of Semgroup Corp. (NYSE: SEMG) and Matrix Services, a subsidiary of Matrix Service Co. (Nasdaq: MTRX) announced plans on March 31 to construct 1.95 million barrels of crude oil storage at SemCrude's Cushing terminal.
According to news releases from both companies, the project will include seven 250,000-barrel crude oil tanks and two 100,000-barrel crude oil tanks, and be completed by mid-2012.
SemCrude, will lease the tanks to three customers.
SemCrude President Pete Schwiering says that "Despite all the newly constructed tanks in Cushing a significant demand continues for additional storage. This demand is enhanced by increased deliveries of Canadian crude and the pending expansion of White Cliffs Pipeline."
SemCrude currently has nearly five million barrels of storage capacity in Cushing.