Magellan Midstream Partners and TransCanada have a joint development agreement to connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal. The $50 million project would include a 9-mile, 24-inch pipeline under a 50/50 ownership agreement. It would give TransCanada’s Keystone and Marketlink shippers access to Magellan’s Houston and Texas City crude oil distribution system.
Magellan will build more infrastructure at its East Houston terminal to handle movements from the new pipeline. Magellan will serve as construction manager and operator. Construction of the Houston tank terminal is expected to be completed this year. The pipeline is expected to be operational by late 2016.