As Tulsa-based Magellan Midstream Partners was dealing with a 2,500 gallon oil spill in the Houston area Wednesday, the company was announcing plans for a partnership with Valero to construct a 135- mile long pipeline in Texas.
As for the spill, the Environmental Protection Agency said it had been cleaned up by the company following Hurricane Harvey.
Liz Bowman, a spokeswoman for the EPA said the agency closely monitored the cleanup along with the U.S. Coast Guard. The spill happened at Magellan Midstream’s facility in the east Houston suburb of Galena Park on Sunday.
But the company leadership also focused Wednesday on their announcement of a $375 million pipeline to be built to expand delivery capacity to Temple, Waco and Dallas as well as Magellan’s Midcontinent markets. Working in a partnership with Valero Energy Corp., the company will build the 1-inch pipeline from its terminal in east Houston to Hearne, Texas. The company says the line will handle increased demand for transportation of gasoline, diesel and jet fuels.
Other markets will see increased delivery as well as the company plans to reverse an existing pipeline to connect to the new segment. It will add by nearly 50 percent of what’s being delivered to the Texas, Midcontinent and Little Rock markets.
“Demand for refined petroleum products remains strong along Magellan’s extensive pipeline system,” said Magellan CEO Michael Mears. “Magellan is pleased to meet the industry’s need for pipeline capacity serving the Dallas market and other important demand centers along our refined products pipeline system with an attractive investment supported by long-term commitments from well-known, strong creditworthy customers.”