Magellan Midstream Partners LP said it will build a new origin at Barnhart, Tex., to accept crude oil shipments on its Longhorn Pipeline. The new origin point, about 75 miles east of the pipeline’s Crane, Tex., origin, will cost $25 million and will begin to receive crude in early 2015.
Magellan also plans to expand the capacity of the Longhorn Pipeline by 50,000 b/d while increasing the capacity to 275,000 b/d, all committed by long-term customer agreements. The $55 million expansion will be ready by mid-2014.
Magellan owns the longest refined petroleum products pipeline system in the US, which includes access to more than 40% of the country’s refining capacity. It can store more than 80 million bbl of petroleum products.
Earlier this year, Blueknight Energy Partners LP agreed with Advantage Pipeline LLC to purchase 30% ownership in the 70-mile Pecos River crude oil pipeline from Pecos, Tex., to Crane, which allows West Texas producers to deliver to Gulf Coast markets through a connection to the Longhorn Pipeline at Crane (OGJ Online, Feb. 5, 2013).