Magellan Midstream announces open season for proposed crude oil pipeline

Published on December 05, 2017 by Kevin Randolph

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Magellan Midstream Partners, L.P. recently announced plans to develop a new pipeline from the Permian and Eagle Ford Basins to destinations in the Corpus Christi and Houston, Texas-markets and launched an open season to assess customer interest.

The proposed project would include an approximately 375-mile, 24-inch diameter pipeline from Crane to a location near Three Rivers, Texas. This would provide shippers with 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 system is anticipated 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, depending on industry demand.

Potential customers must submit binding commitments by 5:00 p.m. Central Time on Feb. 1, 2018.

Magellan is considering additional pipeline extensions for Midland and Orla, Texas, in the Permian Basin and Gardendale and Helena, Texas in the Eagle Ford Basin. Magellan earlier announced the construction of a 60-mile, 24-inch Delaware Basin pipeline that would deliver crude oil and condensate from Wink to Crane.

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