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Magellan Midstream to Develop $1 Billion Permian-to-Gulf Coast Pipeline

Midland Reporter-Telegram, December 6, 2017

Magellan Midstream Partners, L.P. has announced that it intends to develop a new pipeline and has launched an open season to assess customer interest to transport various grades of crude oil and condensate from the Permian and Eagle Ford Basins to multiple destinations in the Corpus Christi and Houston, Texas markets, including Magellan’s existing crude oil terminals in these markets. 

We estimate the cost of the project will be in excess of a billion dollars,” Thomas Byers, Magellan’s manager, government and media affairs, said in an email. “However, given the numerous potential variations of this project, we are not providing a total dollar amount at this time.”

The proposed project would include construction of an approximately 375-mile, 24-inch diameter pipeline from Crane to a location near Three Rivers, Texas, providing shippers the option to ultimately deliver crude oil and condensate from the Three Rivers area to the Houston area via a new 200-mile pipeline or to the Corpus Christi area via a new 70-mile pipeline. The potential pipeline system is expected to have an initial capacity of at least 350,000 barrels per day (bpd) with the ability to expand up to 600,000 bpd for each destination, if warranted by industry demand.

Additional pipeline extensions are being considered for Midland and Orla, Texas in the Permian Basin and Gardendale and Helena, Texas in the Eagle Ford Basin. Magellan previously announced the construction of a 60-mile, 24-inch Delaware Basin pipeline to deliver crude oil and condensate from Wink to Crane.

Subject to receipt of all necessary permits and approvals, the proposed pipeline could be operational by the end of 2019.

Click here to read the full article from Midland Reporter-Telegram.


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