Magellan to undertake $300m expansion of Texas pipeline

Magellan Midstream Partners has unveiled plans to carry out a $300m expansion of the western leg of its refined petroleum products pipeline system in Texas, US.

The decision was taken after a successful open season that began earlier this year.

The expansion will increase the capacity of the western leg of pipeline system from the existing 100,000 barrels per day (bpd) to 150,000bpd. It is aimed at meeting demand in Abilene, Midland/Odessa and El Paso, Texas and New Mexico.

Magellan noted that the expansion will also offer the pipeline system market access in Arizona and Mexico via connections to other pipelines.

The pipeline system can be expanded further by 20,000bpd and transports gasoline and diesel fuel from Gulf Coast and Mid-Continent refineries to cities in Texas.

Magellan Midstream Partners CEO Michael Mears said: “Magellan’s extensive refined products pipeline system provides significant optionality for our customers, including the ability to access supply from multiple Gulf Coast and Mid-Continent refineries.

“We are pleased to expand the western leg of our Texas pipeline to serve increasing demand for refined petroleum products in West Texas and New Mexico, as well as surrounding markets in Arizona and Mexico via third-party pipeline connections.”

The planned expansion includes the addition of connectivity to the ExxonMobil Pipeline Company’s terminal in Wink, Texas.

Conditional on receipt of all necessary permits and approvals, the expanded capacity is expected to be available in mid-2020.

A supplemental open season is being planned to secure additional commitments.

The partners are also contemplating the construction of a new refined products terminal in Midland.