Magellan looks to expand refined products pipeline to Colorado

Magellan Midstream Partners said Nov. 18 it launched an open season to dramatically expand refined products pipeline capacity into Colorado as demand picks up and refineries continue to ramp up run rates.

Magellan said it aims to expand its 450-mile pipeline segment that runs from El Dorado, Kansas, to Denver and Colorado Springs markets from 5,000 b/d to a total capacity of 65,000 b/d by adding new pumping stations and incremental pumping capabilities.

The pipeline transports various grades of gasoline, diesel and jet fuel to the greater Denver metro area, including the Denver International Airport. Apart from trekking south from Denver to Colorado Springs, Magellan's network also stretches to the north to Wyoming hubs and to Rapid City, South Dakota.

Magellan said the expansion would move more products into Colorado from Houston-area refineries and from Oklahoma hubs.

"Expansion of the pipe segment would provide the Colorado market additional access to refined products from Midcontinent and Gulf Coast refineries via Magellan's extensive pipeline system," Magellan said in a statement.

While Magellan did not provide a cost estimate, the project would be "capital efficient" because it would focus on adding more pumping capacity and not new pipelines.

The open season is slated to run through Dec. 17.

Magellan said the project could be completed and brought online by late 2022.