• Magellan to Expand Western Leg of Texas Products Pipeline

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    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

     

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