Magellan Midstream Partners, L.P. and M3 Midstream LLC (Momentum) plan to build a 180-mile pipeline originating in LaSalle and Live Oak County, TX and terminating in Corpus Christi, TX.
The planned system would deliver crude and condensate from the Eagle Ford Shale formation to Magellan’s existing distribution terminal in Corpus Christi.
The pipeline would have the capacity to supply more than 180,000 bopd and condensate to Gulf Coast markets in Corpus Christi, Houston and Beaumont, TX and St. James, LA.
The project will also include an expansion of crude oil and condensate storage at Magellan’s Corpus Christi terminal. Within the next few months, Magellan could initially offer a high volume truck unloading facility and storage services for its customers who wish to utilize truck delivery at the terminal and barge loading. Other truck unloading facilities would be added as needed to provide supply into the pipeline including one in Live Oak County. In addition, the project includes the potential construction of more than 1 MMbbls of new storage at Magellan’s Corpus Christi terminal for crude oil and condensate.
Design of the pipeline is nearing completion and pipeline construction and terminal modifications are expected to take 14 to 18 months to complete. However, Magellan could offer interim storage services and barge loading within 8 to 12 months to handle start up pipeline shipments. The ownership structure of the proposed pipeline is currently under assessment, and Magellan would continue to own all assets at the Corpus Christi terminal. The construction of the pipeline and terminal projects are dependent upon the successful outcome of ongoing commercial negotiations already under way and the approval of Magellan and Momentum management.