Magellan launches open season for W. Texas-to-Houston oil line

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Aug. 2 -- Magellan Midstream Partners LP announced July 29 launching an open season to assess firm customer interest to transport crude oil from West Texas to the partnership's East Houston terminal. Magellan is evaluating the reversal and conversion of a portion of its 18-in. OD Houston-to-El Paso refined products pipeline, formerly known as the Longhorn pipeline, to crude oil service. This system's potential crude transportation capacity would be up to 200,000 b/d.

Magellan is particularly considering reversal of the pipeline segment from Crane, Tex., to Houston. Crane is about 30 miles south of Odessa, Tex. If the reversal and conversion move forward, the partnership would still be able to transport at least 60,000 b/d of refined products to the El Paso market by enhancing the operational connectivity of its nearby infrastructure.

The project scope remains under review, but current preliminary estimates for the potential reversal and conversion of this pipeline system, connectivity enhancements for refined products service, and associated storage are approximately $150 million. Interested customers must submit binding commitments to Magellan by Sept. 15.

Magellan is also evaluating pipeline connections to transport crude oil and condensate from the Eagle Ford shale formation to its East Houston terminal, which may be included in a future open season.

Contact Christopher E. Smith at chriss@ogjonline.com.

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