New Pipeline Construction Project Open Season Launched

Magellan Midstream Partners, L.P.  has launched an open season to assess customer interest in a new pipeline to deliver various grades of crude oil and condensate from the Permian and Eagle Ford Basins to multiple destinations in the Corpus Christi and Houston, Texas markets. All potential customers must submit binding commitments by 5:00 p.m. Central Time on Feb. 1, 2018.

The proposed project would consist of construction of an approximately 375-mile, 24-inch diameter pipeline from Craneto a location near Three Rivers, Texas, providing shippers the option to ultimately deliver crude oil and condensate from the Three Rivers area to the Houston area via a new 200-mile pipeline or to the Corpus Christi area via a new 70-mile pipeline. The potential pipeline system is expected to have an initial capacity of at least 350,000 barrels per day (bpd) with the ability to expand up to 600,000 bpd for each destination, if warranted by industry demand.

Additional pipeline extensions are being considered for Midland and Orla, Texas in the Permian Basin and Gardendale and Helena, Texas in the Eagle Ford Basin. The company previously announced the construction of a 60-mile, 24-inch Delaware Basin pipeline to deliver crude oil and condensate from Wink to Crane, Texas.

Subject to receipt of all necessary permits and approvals, the proposed pipeline could be placed in service by the end of 2019.

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