Tulsa’s Magellan Midstream Partners, L.P. has joined forces with Energy Transfer Partners, L.P. based in Dallas and Delek US Holdings Inc. to announce plans to construct a new crude oil pipeline from the Permian Basin to the Texas Gulf Coast region.
The 600-mile 30-inch pipeline system is expected to be operational by mid-2020, carrying oil from several Texas origination points including Wink, Crane and Midland.
Magellan and the others plan to launch an open season for more shipper volume commitments on the new system this week.
The pipeline system will have the strategic capability to move crude oil to both Energy Transfer’s Nederland, Texas terminal and Magellan’s east Houston, Texas terminal.
In August, Magellan Midstream Partners and Plains All American Pipeline, L.P. announced the sale of their 50% interest in the Bridge Tex Pipeline Company for $1.438 billion. The sale was to OMERS, a benefit pension plan for municipal employees in Ontario, Canada.
BridgeTex owns a 400,000 barrel a day crude oil pipeline that extends from Colorado City in West Texas to Houston. The line delivers oil into Magellan’s East Houston terminal and its crude oil distribution system. with connections to refineries in Houston and Texas City as well as to marine export capabilities via Magellan’s Seabrook Logistics joint venture terminal.