Magellan Midstream Launches Open Season for Potential New Mexico Refined Products Pipeline Expansion


Magellan Midstream Partners announced it has started an open season to determine customer interest in possible expansion of its New Mexico refined petroleum products pipeline.

The nearly 250-mile pipeline segment currently transports various grades of gasoline and diesel fuel from Magellan’s terminal in El Paso, Texas to terminals in Albuquerque, New Mexico owned by Marathon and Vecenergy.

The Tulsa-based company said expansion of the pipe segment would provide the New Mexico market additional access to refined products from El Paso-area and Gulf Coast refineries via Magellan’s extensive pipeline system.

The capital-efficient expansion would increase the pipeline’s capacity by more than 5,000 barrels per day (bpd), to a new total capacity in excess of 30,000 bpd. The higher capacity could be available in late 2022 following the addition of incremental pumping capabilities.

The proposed expansion followed Magellan’s fourth quarter 2020 report showing a drop in net income from more than $286 million a year ago to about $184 million for the just concluded quarter. Magellan blamed the drop on reduced demand for refined productions caused by the COVID-19 and related restrictions.



The open season for the possible pipeline expansion will end March 19.

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