Magellan Midstream Partners, L.P. announced that following a successful open season, it plans to expand the western leg of its refined petroleum products pipeline system in Texas to handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas and New Mexico. The pipeline system can also access markets in Arizona and Mexico via connections to other pipelines.
Fully supported by long-term customer commitments, Magellan is expanding the capacity of the western leg of its Texas refined products pipeline system to approximately 150,000 barrels per day (bpd) from its current capacity of 100,000 bpd. The expanded capacity will be accomplished by increasing the pipeline size along the partnership’s existing route. Connectivity to the ExxonMobil Pipeline Company’s terminal in Wink, Texas will also be added as part of the expansion.
“Magellan’s extensive refined products pipeline system provides significant optionality for our customers, including the ability to access supply from multiple Gulf Coast and Mid-Continent refineries,” said Michael Mears, chief executive officer. “We are pleased to expand the western leg of our Texas pipeline to serve increasing demand for refined petroleum products in West Texas and New Mexico, as well as surrounding markets in Arizona and Mexico via third-party pipeline connections.”
Magellan currently expects to spend approximately $300 million on this project, with the expanded capacity available mid-2020, subject to receipt of all necessary permits and approvals.
The pipeline system’s capacity could be expanded by another 20,000 bpd, up to 170,000 bpd. Given the strong interest expressed during the initial open season, the partnership plans to conduct a supplemental open season for additional commitments in the near future for a possible further expansion. In addition, construction of a new refined products terminal in Midland remains under consideration.