Magellan Midstream Partners LP and Navigator Energy Services have extended the open season to solicit transportation commitments for the proposed Voyager Pipeline to transport crude oil from Cushing, Okla., and Midland, Tex., to Houston.
The level of shipper interest in the Midland origin, announced in March, combined with shipper requests for additional grades of crude and condensate at Cushing, requires further evaluation of the scope of the Voyager Pipeline project, the companies said.
The proposed Voyager pipeline would include construction of nearly 500 miles of 20-in. line from both Magellan’s Cushing and Midland terminals to its terminal in Frost, Tex. From Frost, a 24-in. pipeline would be constructed to Magellan’s terminal in East Houston.
At the Cushing origin, Voyager would provide shippers the option to begin deliveries at Cushing from Magellan-operated Saddlehorn Pipeline, serving the Rockies and Bakken production regions, Navigator’s Glass Mountain Pipeline, serving the Midcontinent basins, as well as other connections within the Cushing crude oil hub.
Additional storage and operational capabilities to move other grades of crude oil and condensate to the Gulf Coast are being evaluated.
The Midland origin would enhance the project's supply flexibility from the Permian basin. As a result, facility options are being reviewed, which could include the repurposed use of existing Magellan pipeline and rights-of-way, newbuild pipeline, or a combination of both.
At the destination, Magellan’s Houston crude oil distribution system could further deliver the product to all refineries in the Houston and Texas City refineries or to export facilities, such as Magellan's Seabrook Logistics joint venture terminal.
The system is expected to have an initial capacity of as much as 400,000 b/d with the ability to expand. It could be operational by early 2021.
Binding commitments must be submitted by midday on Aug. 30.