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Magellan soliciting shipper contracts to further expand Texas pipe system

Magellan Midstream Partners LP began a supplemental open season seeking shipper contracts for another possible expansion of the western leg of its refined petroleum products pipeline system in Texas.

Depending on the results of the supplemental open season, Magellan would expand the system by adding another 35,000 barrels per day of capacity, raising its total capacity to 185,000 bbl/d. Magellan recently confirmed that it is proceeding with its plan to expand the system to about 150,000 bbl/d after receiving enough shipper interest. The system's current capacity is 100,000 bbl/d.

Magellan is also evaluating the construction of a new refined products terminal in Midland, Texas.

Magellan's pipeline system connects the Barnett and Permian basin regions to markets in Texas and other parts of the Southwest. The planned expansion would accommodate gasoline and diesel fuel deliveries to markets in central and western Texas as well as in New Mexico. Connections to other pipelines would allow for deliveries to markets in Arizona and Mexico.

The expanded capacity is scheduled to come online in mid-2020. The open season is set to close July 11.