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Magellan Midstream to further expand Texas refined products pipe system

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Magellan Midstream to further expand Texas refined products pipe system

Magellan Midstream Partners LP announced a further expansion of the western leg of its refined petroleum products pipeline system in Texas.

The partnership plans to expand the pipe's capacity to handle 175,000 barrels per day based on additional commitments from a supplemental open season, according to a July 30 news release. It was previously expected to expanded to 150,000 bbl/d. With the further expansion, Magellan Midstream expects to spend about $500 million on the project, with the capacity being available in mid-2020.

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 be done through a combination of increased pipe diameter on existing lines and construction of 140 miles of new pipe from Hearne to Alexander, Texas, according to the news release.