Magellan extends Crane-to-Houston crude line open season

Magellan Midstream Partners LP extended by a week the binding open season to solicit commitments from shippers to transport crude oil from Crane, Tex., to the partnership’s East Houston terminal for further delivery to the Houston and Texas City-area refineries through Magellan’s distribution system. Binding commitments for the Crane-to-Houston crude oil pipeline are now due Mar. 1.

The partnership is reversing and converting its pipeline from Crane to Houston for crude oil service. Initial capacity will be 135,000 b/d, expandable to 225,000 b/d if warranted by committed capacity from the open season. Magellan expects the reversed pipeline to enter service early 2013, pending regulatory approvals.

Magellan is also considering building a new pipeline segment or using existing third-party infrastructure to move crude oil from Midland, Tex., to Crane for delivery to the Houston area and has been soliciting binding commitments to assess customer interest. The Midland-to-Houston open season also ends on Mar. 1.

The partnership initially held an open season on this project in summer 2010 (OGJ Online, Aug. 2, 2010) and on Sept 1, 2011, announced it was proceeding with the conversion and reversal of the Crane-to-Houston segment of system.

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

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