The company is evaluating the reversal and conversion of a portion of its 18-inch Houston-to-El Paso pipeline, formerly known as the Longhorn pipeline, to crude oil service. This pipeline system’s potential crude transportation capacity will be up to 200,000 barrels per day.
Specifically, Magellan is considering the reversal of the pipeline segment from Crane, Texas to Houston to transport crude oil from West Texas to its East Houston terminal. Crane is approximately 30 miles south of Odessa, Texas.
If the reversal and conversion move forward, the company will still be able to transport at least 60,000 barrels per day of refined petroleum products to the El Paso market by enhancing the operational connectivity of its nearby pipeline infrastructure.
In addition, the company is evaluating pipeline connections to transport crude oil and condensate from the Eagle Ford Shale formation to its East Houston terminal, which may be included in a future open season.
Although the project scope remains under review, current preliminary estimates for the potential reversal and conversion of this pipeline system, connectivity enhancements for refined products service and associated storage are approximately $150m.
