Magellan Midstream Partners will expand the western leg of its refined petroleum products pipeline system in Texas.
The company previously announced its plans to expand the capacity of this line segment to 150,000 barrels per day from its current capacity of 100,000 barrels per day. Based on additional committed volume received as part of its recent supplemental open season, Magellan now plans to expand this capacity to 175,000 barrels per day at a cost of $500 million.
The expanded capacity will handle incremental shipments of petrol and diesel fuel to demand centres in Abilene, Midland/Odessa and El Paso, Texas and New Mexico. The pipeline system can also access markets in Arizona and Mexico via connections to other pipelines.
The expansion will be accomplished by a combination of increased pipeline diameter along the existing route and construction of 140 miles of new pipe from Hearne to Alexander, Texas. Connectivity to the ExxonMobil Pipeline Company's terminal in Wink, Texas will also be added as part of the expansion.
It is expected to be available by mid-2020. The company says that construction of new refined products terminals in both Midland and the Delaware Basin remain under review.
Michael Mears, CEO, says: 'Magellan's expansion of our refined products pipeline system into West Texas provides our customers with continued flexibility to meet growing demand for petrol and diesel fuel in the region with supply from our Gulf Coast and Mid-Continent origins.
'Further, construction of the new pipeline segment between Hearne and Alexander has the strategic advantage of providing additional capacity along our extensive pipeline network to satisfy strong demand for refined products destined for the Dallas-Fort Worth metropolitan area.'
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