Magellan Midstream news: August 2014
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Reactivating SCOOP pipeline service
Tulsa-based Magellan Midstream Partners is re-activating service on a 135 mile segment of a pipeline system from Healdton to Cushing, USA.
TThe energy firm reported this week that the renewed system will carry crude oil and condensate, which is a type of ultralight oil, from producers in the South Central Oklahoma Oil Province (SCOOP) play.
“We are excited about offering safe, reliable and cost-effective transportation and storage services for condensate and crude oil,” Robb Barnes, Magellan’s Senior Vice President of commercial crude oil, said in a statement.
Magellan acquired the inactive pipeline segment four years ago as part of a larger acquisition.
The system is expected to initially move up to 35 000 bpd once active by Q3 2015.
The Tulsa firm owns and operates approximately 12 million bbls of crude oil storage at the Cushing hub.
BridgeTex pipeline
In June, Magellan began filling terminals connected to the BridgeTex Pipeline, a south Texas joint venture with Occidental Petroleum. It is expected to be operational in Q3.
The companies announced that the open season would end on 7 August, by when shippers can secure transportation commitments on the pipeline.
An initially successful open season for the BridgeTex Pipeline, whereby the company secured long-term commitments, led to the construction of the pipeline in Nov 2012. The pipeline is nearing completion and is in the final stage of construction.
When fully operational, the BridgeTex pipeline is anticipated to have a transport capacity of 300 000 bpd of crude. The pipeline will deliver crude oil to the Houston Gulf Coast area from Colorado City, TX. Delivery of the crude is expected to begin by the middle of Q3.
The BridgeTex Pipeline system will offer shippers the option to access the refining capacity and large transportation hubs in the Houston Gulf Coast area. The pipeline would also connect to several third-party terminals and distribution systems, providing shippers a wider area of coverage.
Traditionally a refined petroleum transporter, Magellan has steadily diversified its crude oil pipeline and terminal portfolio. The shift began when the Tulsa firm bought the 700 mile Longhorn Pipeline in 2009, reversing it and converting it to carry crude oil last year.
Edited from various sources by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/business-news/01082014/magellan-midstream-news-august-2014/
You might also like
Decouplers making a difference
Jay Warner, Dairyland Electrical Industries, USA, Jerzy Sibila and Jerzy Mossakowski, CORRSTOP, Poland, explain how AC mitigation is a proven technique to solve AC interference problems on pipelines, referring specifically to the use of DC decouplers.
