Magellan Eyes Further Expansion of Refined Products System
Two weeks after announcing an expansion of its refined petroleum products pipeline system in Texas, Magellan Midstream Partners says it might increase capacity even more than originally planned.
Magellan announced in late May that it will increase the capacity of the western leg of its Texas refined products pipeline system to 150,000 bpd from its current capacity of 100,000 bpd. On Monday, Magellan launched a supplemental open season for an additional 35,000 bpd of capacity and said it is continuing to review the potential construction of a new refined products terminal in Midland, Texas.
The partnership is expanding the system to handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa, El Paso and New Mexico, with access to Arizona and Mexico markets via connections to other pipelines.
The initial 50,000-bpd expansion is expected to cost $300 million and begin service in mid-2020. Magellan said that project is supported by long-term customer commitments.
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