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.

Related Articles

Texas: Energy adds Bone Spring/Avalon acreage

01/07/2011 Energen Resources Corp., Birmingham, Ala., has purchased 3-year leases on 17,000 net acres in the Bone Spring and Avalon shale trends in the Permia...

NETL: Carbon dioxide for EOR provides model for pipeline system

02/03/2011 A private sector model with a state-based regulatory system, instead of one that is federal, will “most likely result in a robust” US c...

Brent tops WTI as benchmark

02/14/2011 As the international benchmark other crudes are priced against, “West Texas Intermediate is dead, long live North Sea Brent,” said anal...

ExxonMobil: Oil to account for most new production in 5 years

03/17/2011 ExxonMobil Corp. expects to add nearly 1.4 million boe/d net to its production by 2016, and oil will account for 80% of that new production, compan...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected