Magellan Cancels Plan for Short-Haul Oil Pipeline in West Texas
Reuters – Magellan Midstream Partners LP has canceled plans to develop a stand-alone crude pipeline West Texas, the area of the nation's top oil field as it considers a lower-cost project for the same region, an executive said.
The Tulsa-based company plans to pursue a lower-cost project to meet shipper needs in an effort to be more capital efficient, its chief executive told investors on a conference call.
“It would be a much, much lower capital investment, and it would be a much more efficient way for us to source barrels into Longhorn (pipeline) for our customers,” Magellan Chief Executive Michael Mears said on Thursday
In 2017, Magellan estimated that the pipeline would cost $150 million. A write off of expenditures related to the project reduced fourth-quarter distributable cash flow by $9 million, an executive said on the call.
The Tulsa, Okla.-based pipeline operator had said in 2017 it would build a 60-mile pipeline from Wink to Crane, Texas, to supply crude to its large, 275,000-bpd Longhorn crude pipeline. That line runs from the Permian Basin in West Texas to refining and export facilities in Houston.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments