Magellan Pipeline Expansion

On July 30th, Magellan Midstream Partners, L.P. announced an expansion of the western segment of its refined petroleum products pipeline system in Texas. This expansion, which will increase the capacity of the pipeline form 100,000 barrels per day (bpd) to 175,000 bpd, will be accomplished by three separate construction projects. First, Magellan will build a new 140 mile pipeline from Hearne to Alexander, Texas following Magellan’s existing pipeline route between the two cities. Secondly, Magellan will be expanding the diameter of this existing pipeline to take on a greater capacity of petroleum products. Lastly, Magellan will construct a connecting pipeline to ExxonMobil Pipeline Company’s terminal in Wink, Texas.

The western segment of pipeline to be expanded runs across Erath, Bosque, McLennan, Falls, and Robertson counties. Magellan estimates that the pipeline expansion project will cost approximately $500 million, and will be completed by mid-2020, depending on the receipt of necessary permits and approvals. The company is also considering the construction of new terminals in Midland and the Delaware Basin.

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