Magellan Midstream Partners has said that it is proceeding with the permitting and the final engineering for the potential reversal and conversion of a portion of its Houston-to-El Paso pipeline to crude oil service.
The company claims that the recent expressions of interest received from potential shippers suggest that enough support exists to justify the project.
However, the partnership will make a definitive decision on this project once binding agreements are executed.
The company continues to finalize the scope of this project and to negotiate binding agreements with shippers and expects to make a decision on this project within the next two months.
If the project is approved and this schedule is maintained, the partnership expects the reversed crude oil pipeline to be operational within 18 to 24 months.
The company said that the reversed pipeline system will have a capacity of up to 200,000 barrels per day.