Magellan plans Texas pipeline, terminal expansion

Magellan Midstream Partners LP plans to invest $65 million to expand its products facilities in Texas.

Aug 1st, 2007

By OGJ editors
HOUSTON, Aug. 1 -- Magellan Midstream Partners LP plans to invest $65 million to expand its products facilities in Texas.

The partnership intends to loop the existing 12-in. pipeline between its Galena Park origins and its East Houston terminal with a 16-in. line, to build 250,000 bbl of storage at its East Houston terminal, and to add a pump station north of Houston.

These projects will increase the partnership's ability to handle petroleum products originating from the Houston area for delivery throughout Texas, adding 200,000 b/d of incremental pipeline capabilities to the East Houston terminal and 65,000 b/d of incremental pipeline capabilities to Dallas and other Texas areas. The terminal is an origination point for the partnership's 8,500-mile products pipeline system.

The additions, expected to be operational in second-half 2008, will provide flexibility for future pipeline capacity increases.

The partnership also is expanding the storage and loading capabilities at its terminals in Dallas. This enhancement includes construction of 80,000 bbl of storage and expansion of the existing truck rack at its Dallas terminal to accommodate increased throughput of at least 10,000 b/d. In addition, the partnership plans to increase pipeline capacity and construct 100,000 bbl of storage at its Aledo terminal and build a new truck rack at its Frost facility.

Based on current project plans, the terminal expansions should provide phased-in incremental capacity and be fully operational in second-quarter 2008.

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