Publicly traded partnership Magellan Midstream Partners has announced plans to further expand the western leg of its refined petroleum products pipeline system in Texas, US.
Image: A pipeline project. Photo: courtesy of outgunned21/Freeimages.com.
The firm earlier said it will expand the capacity of the line segment to roughly 150,000 barrels per day (bpd) from its current capacity of 100,000bpd.
However, due to additional committed volume received as part of its recent supplemental open season, Magellan is planning to expand the capacity of the pipeline to 175,000bpd.
With the expanded capacity, the firm intends to handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas and New Mexico.
Additionally, the pipeline system will have access to markets in Arizona and Mexico via connections to other pipelines.
Magellan Midstream Partners CEO Michael Mears said: “Magellan’s expansion of our refined products pipeline system into West Texas provides our customers with continued flexibility to meet growing demand for gasoline and diesel fuel in the region with supply from our Gulf Coast and Mid-Continent origins.
“Further, construction of the new pipeline segment between Hearne and Alexander has the strategic advantage of providing additional capacity along our extensive pipeline network to satisfy strong demand for refined products destined for the Dallas-Fort Worth metropolitan area.”
Subject to receipt of all permits and approvals, the expanded capacity is planned to be made available in mid-2020.
The expansion project, which is expected to cost approximately $500m, is supported by long-term customer commitments.
The project will include construction of increased pipeline diameter along the partnership’s existing route and 140 miles of new pipe from Hearne to Alexander, Texas.
Magellan is also planning to connect the pipeline system to the ExxonMobil Pipeline’s terminal in Wink, Texas.
The partnership is primarily involved in transporting, storing and distributing refined petroleum products and crude oil.