Magellan launches open season for petroleum pipeline system

Magellan Midstream Partners has launched a supplemental open season to solicit additional commitments for transportation volume on the western leg of its refined petroleum products pipeline system in Texas.
Magellan is in the process of expanding the capacity of its west Texas refined products pipeline system to 175,000 barrels per day from its current capacity of 100,000 barrels per day. The company is also building a new refined products terminal in Midland, Texas.
It is expected that both the west Texas refined products pipeline expansion and the new Midland terminal will be operational in mid-2020.
The pipeline system primarily transports gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas as well as New Mexico. The pipeline system can also access markets in Arizona and Mexico via connections to third-party pipelines.
Binding commitments on the open season are due by December 20. Subject to the results of the supplemental open season, Magellan is considering the addition of another 25,000 bpd of capacity on the pipeline, for a total capacity of up to 200,000 bpd, which could be operational yb the end of 2021.