Magellan Midstream Partners and TransCanada Corporation have announced plans to construct a pipeline connecting their two terminals in Houston.
The project will include the construction of a nine mile, 24-inch diameter pipeline, in which both company will have 50/50 ownership interest.
The project, which will connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal, would give TransCanada’s Keystone and Marketlink shippers access to Magellan’s Houston and Texas City crude oil distribution system.
It is estimated to cost around $50 (€47) million. In addition, Magellan would expect to develop additional infrastructure at its East Houston terminal to accommodate movements from the new pipeline.
Magellan would serve as construction manager and operator of the pipeline. Construction of TransCanada’s Houston tank terminal in 2015.
Michael Mears, Magellan’s president and CEO, says: ‘Magellan is excited about the prospect of further enhancing our crude oil connectivity in the Houston market.
‘This connection would provide our customers with additional supply options for the Houston Gulf Coast refining region, with access to crude oil from the Cushing storage hub.’
TransCanada’s president and CEO adds: ‘This project will allow us to directly connect to key refineries in the Houston and Texas City area.
‘This is another great example of a project that would help to bolster North American energy security and independence.’