Magellan Midstream Increases Scope and Extends Open Season for Potential Expansion of Western Leg of Texas Refined Products Pipeline System

By NAP Staff May 4, 2018 View Profile

Magellan Midstream Partners LP announced May 2 that it increased scope and extension of the open season to solicit commitments from shippers for the potential expansion of the western leg of its refined products pipeline system in Texas.

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Binding commitments are now due by 5 p.m. Central Time on May 16. Significant interest has been expressed from potential shippers, and the one-week extension provides interested shippers additional time to finalize their commitments.

The proposed expansion would increase Magellan’s capability to transport refined petroleum products, such as gasoline and diesel fuel, to demand centers in Abilene, Midland/Odessa and El Paso, Texas, with further optionality to access markets in the states of New Mexico and Arizona, as well as international markets in Mexico via connections to other pipelines owned by Magellan and third parties.

Magellan’s extensive refined products pipeline system provides shippers with significant optionality, including connectivity to multiple Gulf Coast refineries and terminals as well as various midcontinent refinery connections, all of which are available supply alternatives for shippers interested in accessing these markets.

The pipeline’s current capacity of 100,000 barrels per day (bpd) could increase to 145,000 bpd following the expansion, or 5,000 bpd more than initially anticipated. If supported by sufficient commitments, the pipeline capacity could be expanded further.

Magellan is also considering the construction of a new refined products terminal in Midland on 100 acres of recently-acquired land if warranted by customer demand.

Subject to the results of this open season and receipt of all necessary permits and approvals, the expanded capacity and Midland terminal could be operational by mid-2020.

For customer inquiries about the open season, please contact Tony Wysocki at 918-574-7174 or tony.wysocki@magellanlp.com. More information about the open season is available at magellanlp.com/whatwedo/liquidpipelinetariffs.aspx.

SOURCE – Magellan Midstream Partners LP