Midstream Partners has launched two separate binding open seasons to solicit capacity commitments from shippers to transport crude oil from West Texas to the partnership’s East Houston terminal for further delivery to the Houston and Texas City-area refineries through Magellan’s distribution system.
Magellan is reversing and converting its pipeline from Crane to Houston for crude oil service. The initial pipeline capacity will be 135,000 bpd but can be expanded up to 225,000 bpd if warranted. Assuming timely permit and regulatory approvals, the partnership expects the reversed pipeline to be operational by early 2013. The open season for the Crane-to-Houston pipeline ended Feb. 23.
The partnership is also considering construction of a pipeline segment or the use of existing third-party infrastructure to access crude oil from Midland to Crane for delivery to the Houston area and is solicited binding commitments to assess customer interest. The Midland-to-Houston open season ended March 1.