Firms agree to build crude oil pipeline
Four firms have agreed to proceed with plans to build to a new pipeline to transport crude oil from the Permian Basin to the Texas Gulf Coast region.
Energy Transfer Partners, Magellan Midstream Partners, MPLX, and Delek US Holdings, Inc. officials said the 30-inch diameter common carrier pipeline would possess the ability to increase the pipe diameter to expand the capacity based upon additional commitments received during the upcoming open season.
The 600-mile pipeline system would have strategic capability to transport crude oil to both Energy Transfer’s Nederland, Texas, terminal and Magellan’s East Houston, Texas, terminal for ultimate delivery through their respective distribution systems. It is expected to be operational in mid-2020 with multiple Texas origins, including Wink, Crane, and Midland.
Energy Transfer Partners is a master limited partnership that owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Magellan Midstream Partners is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil.
MPLX LP is a diversified, growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC) to own, operate, develop and acquire midstream energy infrastructure assets. Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, renewable fuels, and convenience store retailing.
