Magellan Midstream Partners and Occidental Petroleum recently held an open season to jointly assess customer interest to transport crude oil from Colorado City, TX to the Houston Gulf Coast area.
The proposed BridgeTex Pipeline will be capable of transporting approximately 278,000 bopd from Colorado City to Texas City. The project includes approximately 400 miles of newly-constructed pipeline and an expansion by Magellan of its distribution system between East Houston and Texas City. Subject to sufficient commitments from shippers and necessary permits and regulatory approvals, the BridgeTex Pipeline is expected to begin service by mid-2014.
Magellan and Occidental will form a new company to execute the project and will share commercial responsibilities. A joint project team will oversee construction of the new pipeline, with Magellan serving as operator.