Magellan Midstream, an acquisition partnership, will increase capacity at its Dallas and Houston terminals with a pipeline for petroleum products system expansion set to cost $65 million (48 million).
The projects, due for completion in mid-2008, will add 200,000 barrels a day of pipeline capabilities to the east Houston terminal, and 65,000 barrels a day of pipeline capabilities to Dallas and other Texas markets.
In Dallas, Magellan plans to add 80,000 barrels of storage and expand the terminal's existing truck rack to handle 10,000 barrels increased throughput daily. The Aledo terminal will gain 100,000 barrels of additional storage, while a new truck rack will be added to the Frost facility.
Magellan, a Tulsa-based refined products transporter, intends to add a 16-inch diameter pipeline to connect with its 12-inch line between terminals at Galena Park and east Houston, the origination point for Magellan's 8,500-mile system. An extra 250,000 barrels of storage and a new pump station north of the Houston area will also be added.
Magellan has budgeted more than $120 million this year for the projects. The partnership is lifting its capacity to bring about a 1-2% annual growth. Magellan recorded a 3% increase in first-quarter earnings to $49.7 million, based on a 4.5% increase in revenue to $292.2 million.