Magellan and TransCanada to construct Houston pipeline link

US-based Magellan Midstream Partners and TransCanada have announced plans to link the latter’s Houston tank terminal to Magellan’s East Houston terminal.

A new nine-mile, 24-inch diameter crude oil pipeline would be built, owned and operated by HoustonLink Pipeline Company.

The new company will be equally owned by Magellan and TransCanada.

The pipeline is set to provide access to TransCanada’s Keystone and Marketlink customers to Magellan’s Houston and Texas City crude oil distribution system.

Initially, the project was announced in April 2015 and is estimated to cost about $50m.

Magellan and TransCanada also plan to develop additional infrastructure at their respective Houston-area terminals to accommodate shipments from the new pipeline.

Magellan will serve as construction manager and operate the HoustonLink pipeline which is expected to be operational during the first half of 2017.

The pipeline construction is subject to the receipt of all necessary permits as well as regulatory approvals.

Magellan Midstream Partners president and CEO Michael Mears said: "Magellan is excited about the prospect of further enhancing our crude oil connectivity in the Houston market.

"This connection would provide our customers with additional supply options for the Houston Gulf Coast refining region, with access to crude oil from the Cushing storage hub."

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Image: The new pipeline will provide access to TransCanada’s Keystone and Marketlink customers to Magellan’s Texas City crude oil distribution system. Photo: courtesy of anankkml/FreeDigitalPhotos.net