Magellan Extends Open Season for Proposed Crude Oil Pipeline in Texas

April 2018

Magellan Midstream Partners LP announced an extension of the open season to solicit commitments from shippers for a new pipeline to transport various grades of crude oil and condensate from the Permian and Eagle Ford Basins to multiple destinations in the Corpus Christi and Houston, TX markets, including Magellan’s existing crude oil terminals in these markets.

The proposed project would include construction of a 375-mile, 24-inch diameter pipeline from Crane to a location near Three Rivers, TX, 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 Mbpd with the ability to expand up to 600 Mbpd 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, TX in the Eagle Ford Basin. Magellan previously announced the construction of a 60-mile, 24-inch Delaware Basin pipeline to deliver crude oil and condensate from Wink to Crane, TX, and construction of the Wink Pipeline is currently underway.

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