The two companies have undertaken a join project called BridgeTex Pipeline to transport Permian Basin crude oil from the Colorado City in Texas to the Houston Gulf Coast area.
Under the pipeline project, the companies will build about 643.7km and 20in pipeline from Colorado City to Magellan’s terminal in East Houston and construct 80.4km and 24in pipeline between East Houston and Texas City.
BridgeTex Pipeline work will also involve setting up 1.2 million barrels of crude oil storage in Colorado City and 1.4 million barrels crude oil storage at East Houston.
Capable of transporting up to 300,000 barrels of oil per day, the pipeline will have access to Houston Ship Channel refineries, Texas City refineries and to refineries across Gulf Coast, through third party pipelines.
Subject to certain permits, the pipeline is expected to become operational by mid-2014 and will be served by Magellan as the construction manager and operator.
The pipeline has already been supported by long-term transportation commitments.
