Energy Transfer Partners LP, Magellan Midstream Partners LP, MPLX LP, and Delek US Holdings Inc. have received sufficient commitments to proceed with plans to construct a 30-in. common-carrier pipeline to transport crude oil from the Permian basin to the Texas Gulf Coast region.
The 600-mile Permian Gulf Coast (PGC) pipeline system is expected to be operational in mid-2020 with multiple Texas origins, including Wink, Crane, and Midland, and the capability to transport crude oil to both ETP’s Nederland, Tex., terminal and Magellan’s East Houston, Tex., terminal.
An open season for additional shipper volume commitments will launch this week. If needed, the pipe diameter could be increased to expand capacity based upon additional commitments received.
The project is subject to receipt of customary regulatory and board approvals of the respective entities.