Magellan Midstream Partners has confirmed it is going ahead with a $275 million (€201 million) project which includes the construction of 1.25 million barrels of oil storage at its partnering facilities in Crane and East Houston, Texas.
Other plans under the development include reversing and converting a pipeline that runs from Crane to Houston to transport about 135,000 barrels a day of oil from the West Texas Permian Basin to the East Houston terminal.
Magellan will also modify and expand a 20” pipeline stretching from the East Houston terminal to an oil interchange facility situated on the south side of the Houston ship channel.
A 24” crude oil pipeline will be built leading from the Houston ship channel to various refineries in the area.
Finally, the company says it will increase its activity by altering its existing pipeline assets so that they can transport 65,000 barrels a day of petrochemicals from Crane to El Paso, Texas.
Michael Mears, CEO of Magellan, explains why the company has decided to go ahead with the development: ‘Current and forecasted future market dynamics favor the benefits of our pipeline project and customer interest has been strong as new outlets for West Texas crude oil are sought by producers.’
Most of the development is expected to be completed by the middle of next year.