Magellan Midstream Partners has announced plans to build a new Delaware Basin pipeline for crude oil and condensate.
The 60 mile pipeline will run from Wink to Crane, Texas, which serves as an origin to its Longhorn pipeline. The new Wink pipeline will have an initial capacity of 250,000 barrels per day, with the ability to expand to more than 600,000 barrels per day if there is demand for it.
The project also includes the construction of a new terminal at Wink, which will offer broad inbound and outbound pipeline access to parties that connect to the facility.
It is expected to cost $150 million and is due to be operational in mid-2019.
Michael Mears, CEO, says: ‘Magellan is known in the industry for its independent service provider business model and is ideally situated to meet growing industry demand for a crude oil and condensate pipeline system with access to customers originating from the Delaware Basin.’
The new pipeline segment will offer direct service from the Delaware Basin to the Crane origin of Magellan’s Longhorn pipeline, which provides crude oil and condensate transportation service to the Houston and Texas City refining complex and marine export facilities.
In addition, this pipeline segment will be able to provide service from the Delaware Basin to the new crude and condensate line to Corpus Christi, Texas, that has been proposed by Magellan as well as others in the industry.
The company is also assessing additional pipeline and terminal investments in West Texas to strengthen and enhance its overall crude oil service offerings.