Magellan Midstream Partners has unveiled plans to expand the western leg of its refined petroleum products pipeline system in Texas, US.
The expansion will allow the company to deal with increasing shipments of gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas and New Mexico.
Magellan intends to expand the capacity of the western leg of its Texas refined products pipeline system to around 150,000 barrels per day (bpd) from its current capacity of 100,000 bpd.
The expanded capacity will enable to increase the pipeline size along the partnership’s existing route. It will also allow to connect ExxonMobil Pipeline’s terminal in Wink, Texas.
The investment on the expansion project is expected to be around $300m. Subject to receipt of all necessary permits and approvals, the expansion project is expected to become operational in mid-2020.
Magellan Midstream Partners CEO Michael Mears said: “Magellan’s extensive refined products pipeline system provides significant optionality for our customers, including the ability to access supply from multiple Gulf Coast and Mid-Continent refineries.
“We are pleased to expand the western leg of our Texas pipeline to serve increasing demand for refined petroleum products in West Texas and New Mexico, as well as surrounding markets in Arizona and Mexico via third-party pipeline connections.”
The pipeline system will also help to connect markets in Arizona and Mexico through linking other pipelines.
Magellan is planning to conduct a supplemental open season for additional commitments to further expand the project.
In addition, the firm is looking to develop a new refined products terminal in Midland.
Magellan is engaged in the transportation, storage and distribution of refined petroleum products and crude oil.
With access to around 50% of the nation’s refining capacity, Magellan holds capacity to store over 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.