Magellan Midstream Partners and TransCanada announced definitive plans to connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal. HoustonLink Pipeline, a new company owned 50-50 by Magellan and TransCanada, will construct, own and operate a 9-mile, 24-inch crude oil pipeline connecting the terminals.
The new pipeline will provide TransCanada’s Keystone and Marketlink customers access to Magellan’s Houston and Texas City crude oil distribution system.
The joint project, announced in April 2015, is expected to cost $50 million. In addition, Magellan and TransCanada plan to develop additional infrastructure at their respective Houston-area terminals to accommodate shipments from the new pipeline.
Magellan will serve as construction manager and operator for HoustonLink, which is is expected to be operational in the first half of 2017.