Magellan to Expand Western Leg of Texas Products Pipeline
Magellan to Expand Western Leg of Texas Products Pipeline
Magellan Midstream Partners said on Monday that it plans to expand the western
leg of its refined petroleum products pipeline system in Texas to handle
incremental shipments of gasoline and diesel fuel to demand centers in Abilene,
Midland/Odessa and El Paso, Texas and New Mexico, following a successful open
season.
The pipeline system can also access markets in Arizona and Mexico via
connections to other pipelines, the company said.
Fully supported by long-term customer commitments, the capacity of the western
leg of its Texas refined products pipeline system will be expanded to
approximately 150,000 b/d from its current capacity of 100,000 b/d. The expanded
capacity will be accomplished by increasing the pipeline size along the
partnership's existing route, Magellan said. Connectivity to the ExxonMobil
Pipeline Company's terminal in Wink, Texas, will also be added as part of the
expansion.
Michael Mears, Magellan's CEO, said that this pipeline expansion was to serve
increasing demand for refined petroleum products in West Texas and New Mexico,
as well as surrounding markets in Arizona and Mexico via third-party pipeline
connections.
Magellan currently expects to spend approximately $300 million on this project,
with the expanded capacity available mid-2020, subject to receipt of all
necessary permits and approvals.
The pipeline system's capacity could be expanded by another 20,000 b/d, up to
170,000 b/d.
"Given the strong interest expressed during the initial open season, the
partnership plans to conduct a supplemental open season for additional
commitments in the near future for a possible further expansion. In addition,
construction of a new refined products terminal in Midland remains under
consideration," Magellan said.
--Edgar Ang, eang@opisnet.com
leg of its refined petroleum products pipeline system in Texas to handle
incremental shipments of gasoline and diesel fuel to demand centers in Abilene,
Midland/Odessa and El Paso, Texas and New Mexico, following a successful open
season.
The pipeline system can also access markets in Arizona and Mexico via
connections to other pipelines, the company said.
Fully supported by long-term customer commitments, the capacity of the western
leg of its Texas refined products pipeline system will be expanded to
approximately 150,000 b/d from its current capacity of 100,000 b/d. The expanded
capacity will be accomplished by increasing the pipeline size along the
partnership's existing route, Magellan said. Connectivity to the ExxonMobil
Pipeline Company's terminal in Wink, Texas, will also be added as part of the
expansion.
Michael Mears, Magellan's CEO, said that this pipeline expansion was to serve
increasing demand for refined petroleum products in West Texas and New Mexico,
as well as surrounding markets in Arizona and Mexico via third-party pipeline
connections.
Magellan currently expects to spend approximately $300 million on this project,
with the expanded capacity available mid-2020, subject to receipt of all
necessary permits and approvals.
The pipeline system's capacity could be expanded by another 20,000 b/d, up to
170,000 b/d.
"Given the strong interest expressed during the initial open season, the
partnership plans to conduct a supplemental open season for additional
commitments in the near future for a possible further expansion. In addition,
construction of a new refined products terminal in Midland remains under
consideration," Magellan said.
--Edgar Ang, eang@opisnet.com
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