Magellan Midstream to expand refined products pipeline system

Magellan Midstream Partners LP, Tulsa, plans to expand its refined petroleum products pipeline system from the Houston area to El Paso, Tex., to a new capacity of about 100,000 b/d.

Expansion includes construction of a new 16-in., 30-mile pipeline along its existing route between Odessa and Crane, Tex., and additional operational storage to facilitate incremental shipments, the company said in a release Aug. 29. 

Magellan currently expects to spend about $125 million on the project and expects the extra capacity to be available early 2024, subject to permits and approvals.

The company currently can transport about 70,000 b/d of refined petroleum products (gasoline and diesel fuel) from Gulf Coast and mid-continent refineries to El Paso, with further shipper optionality to access markets in New Mexico through its pipeline system, as well as Arizona and Mexico via connections to third-party pipelines.