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 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 Co.’s terminal in Wink, Texas, US, 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, CEO. “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 US$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.
