Magellan Midstream Partners LP plans to expand the western leg of its refined petroleum products pipeline system in Texas after it received sufficient shipper interest during an open season.
The western leg's capacity would be expanded to about 150,000 barrels per day from 100,000 bbl/d by increasing the pipeline size on the system's existing route, according to a May 21 news release. Magellan Midstream also plans to add connectivity to ExxonMobil Pipeline Co.'s terminal in Wink, Texas. The project is fully underpinned by long-term customer contracts.
The expanded pipeline system would deliver an incremental amount of gasoline and diesel fuel to markets in Abilene, Midland/Odessa and El Paso in West Texas as well as in New Mexico. It would also have connections to third-party pipelines, reaching markets in Arizona and Mexico. The expansion would allow Magellan Midstream's customers to access supply from refineries in the Gulf Coast and Mid-Continent and cater to rising demand in West Texas and New Mexico, CEO Michael Mears said in the release.
The project is expected to cost about $300 million, and the expanded capacity is scheduled to come online in mid-2020. The pipeline system may be expanded further by 20,000 bbl/d, for a total capacity of 170,000 bbl/d, depending on the results of a planned supplemental open season.
