Magellan Midstream extends open season for refined products system expansion
July 15, 2022
Magellan Midstream Partners LP, Tulsa, Okla., has extended its open season to solicit customer commitments for a potential expansion of its refined petroleum products pipeline system from the Houston area to El Paso, Tex. (OGJ Online, Apr. 27, 2022).
The extension provides interested customers additional time to finalize commitments, the company said in a release July 15. Binding commitments are now due by 5:00 p.m. Central Time on July 29, 2022.
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 results of the open season and receipt of all necessary permits and approvals, the higher capacity could be available by mid-2023 following the addition of incremental pumping capabilities and construction of operational storage at El Paso, the company said.