Magellan assesses Permian-to-Houston oil pipeline

Magellan Midstream Partners LP and Occidental Petroleum Corp. have launched of an open season to assess customer interest in transporting Permian basin crude oil from Colorado City, Tex., to the Houston-Texas City refining complex.

The proposed 278,000-b/d BridgeTex Pipeline would include roughly 400 miles of newly constructed pipeline and an expansion by Magellan of its distribution system between East Houston and Texas City. Subject to sufficient commitments from shippers and necessary regulatory approvals, the joint venture expects BridgeTex to begin service by mid-2014.

Magellan and Oxy will form a new project company to develop the project and will share commercial responsibilities. A joint project team will oversee building the pipeline, with Magellan serving as operator.

Interested customers must submit binding commitments by July 11.

Earlier this year Magellan held an open season to solicit binding commitments to ship crude from Crane, Tex., to its East Houston terminal (OGJ Online, Feb. 22, 2012). Shipments would occur on a portion of Magellan’s Longhorn pipeline, reversed and converted to ship Permian crude at a capacity of up to 225,000 b/d by mid-2013.

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

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