Magellan Midstream to start construction on new Delaware Basin pipeline

Magellan Midstream Partners, LLC recently announced in will begin construction of the new Delaware
Basin pipeline to transport crude oil and condensate.

Spanning from Wink to Crane, Texas, the 60-mile, 24-inch pipeline will serve as an origin to the Longhorn pipeline from the Delaware Basin and will have an initial capacity of 250,000 barrels per day. Should the industry warrant it, the pipeline has the ability to expand to up to 600,000 barrels per day.

“Magellan is known in the industry for its independent service provider business model and is ideally
situated to meet growing industry demand for a crude oil and condensate pipeline system with access to customers originating from the Delaware Basin,” Michael Mears, CEO of Magellan Midstream Partners,
said.

Magellan said it expects the pipeline will cost approximately $150 million and will be operational by mid-2019, subject to any necessary permits or regulatory approval.

The pipeline will also have the ability to provide service from the Delaware Basin to the new crude oil and condensate line to Corpus Christi, Texas, a move that has been proposed by industry stakeholders.

The company said it plans to conduct an open season for commitments on the new system at a later time and that construction would not depend on its results.