The open season to seek potential customers commenced on 11 June 2012 with binding commitments now due on 18 July 2012.
The new pipeline will initially deliver about 278,000 barrels per day of crude oil to Texas City from Colorado City with two common stream grades including West Texas Intermediate and West Texas Sour.
The project involves the construction of 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, about 400 miles of 20-inch pipeline, tankage at Magellan’s East Houston terminal in Houston and leased capacity in the expanded Magellan pipeline distribution system.
Magellan will be the operator of the pipeline, which is expected to be commissioned by mid-2014 after the necessary approvals.
