Magellan Midstream to assess interest in refined products system expansion

Magellan Midstream Partners LP, Tulsa, Okla., launched an open season to assess customer interest in firm pipeline capacity on its refined petroleum products pipeline system from the Houston area to El Paso, Tex.

The proposed project includes expansion of a 265-mile pipeline segment between Odessa and El Paso, increasing capacity by an estimated 15,000 b/d to about 85,000 b/d, and the use of existing and underutilized pipeline capacity from the Houston area to Odessa.

The project would increase capability to transport refined petroleum products, such as gasoline and diesel fuel, from Gulf Coast refineries to El Paso, with further shipper optionality to access markets in New Mexico through Magellan's pipeline system, as well as Arizona and Mexico via connections to third-party pipelines.

Subject to the open-season results and receipt of all necessary permits and approvals, the increased capacity could be available by mid-2023 following the addition of incremental pumping capabilities and construction of operational storage at El Paso.

Binding commitments are due from interested customers by June 24.