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Magellan seeks to build new Texas products line

11 Jan 2017, 7.44 pm GMT

Magellan seeks to build new Texas products line

Houston, 11 January (Argus) — Magellan Midstream Partners has launched an open season for a new refined products pipeline and other expansions to increase capacity from Houston to Dallas-Ft Worth and central Texas markets.

The project would boost capacity on the Magellan south system by 85,000 b/d by building a line between the company's east Houston terminal and a tank farm in Hearne, Texas. The project also includes reversing the flow on the company's 10-inch pipeline system from Hearne to Frost which currently moves from north to south.

The expansion will allow Magellan to begin offering jet fuel for transportation on its Magellan south system for delivery to its Dallas Singleton terminal, Dallas Love Field and possibly Houston Intercontinental Airport, depending on shipper interest.

Magellan is weighing a new tariff that would allow shippers to reserve firm transportation from Houston to various locations in exchange for long-term commitments.

The expansion and new pipeline could be in service in late 2018.

The open season ends on 10 March.

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