Magellan Midstream Partners and Occidental Petroleum Corporation have extended their binding open season by one week to seek potential customers for their proposed BridgeTex Pipeline project from Colorado City, Texas, to the Houston Gulf Coast area in the US.
The open season, initiated on 11 June 2012, is now due binding commitments on 18 July 2012.
The new pipeline will be designed to handle about 278,000 barrels per day of crude oil to Texas City from Colorado City in the initial phase.
The project would offer shippers access to over 2.2 million barrels per day of refining capacity in the Houston Gulf Coast area, including transportation hubs and third-party terminals and distribution systems.
The scope of work includes building 400 miles of new pipelines and an expansion of Magellan's distribution system between East Houston and Texas City from 350,000 barrels per day to approximately 700,000 barrels per day.
The crude oil pipeline system will comprise an origin pump station, tankage and a terminal at Colorado City, tankage at Magellan's East Houston terminal in Houston and leased capacity in the expanded Magellan pipeline distribution system.
It will transport two common stream grades of crude oil including West Texas Intermediate and West Texas Sour, and is expected to be operational by mid-2014.
Magellan will be the operator of the pipeline, which will offer about 1.4 million barrels of breakout storage for the segregation of crude oil in order to stage crude oil deliveries into the Houston Gulf Coast area.