Magellan Midstream Partners will expand the western leg of its refined petroleum products pipeline system in Texas.
Following a successful open season, the expanded system will be able to handle incremental shipments of petrol and diesel fuel to demand centres in Abilene, Midland/Odessa and El Paso, Texas and New Mexico.
The system can also access markets in Arizona and Mexico via connections to other pipelines.
Fully supported by long-term customer commitments, Magellan is expanding the capacity of the system to 150,000 barrels per day from its current capacity of 100,000 barrels per day. The capacity will be achieved by increasing the pipeline size along the existing route. Connectivity to the ExxonMobil Pipeline Company's terminal in Wink, Texas will also be added as part of the expansion.
Michael Mears, CEO, says: 'Magellan's extensive refined products pipeline system provides significant optionality for our customers, including the ability to access supply from multiple Gulf Coast and Mid-Continent refineries. We are pleased to expand the western leg of our Texas pipeline to serve increasing demand for refined petroleum products in West Texas and New Mexica, as well as surrounding markets in Arizona and Mexico via third-party pipeline connections.'
Magellan expected to spend $300 million on the project, with the expanded capacity available mid-2020.
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