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Open season extended for US crude oil pipeline

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World Pipelines,

Magellan Midstream Partners, L.P. and Navigator Energy Services have announced an extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline to transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston. Binding commitments are now due by 12.00 pm Central Daylight Time on 30 August 2019.

The level of shipper interest in the Midland origin, announced in March, combined with shipper requests for additional grades of crude oil and condensate at Cushing, requires further evaluation of the scope of the Voyager Pipeline project. As currently contemplated, the proposed Voyager Pipeline would include construction of 20 in. diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas. From Frost, a 24 in. diameter pipeline would be constructed to Magellan’s terminal in East Houston.

At the Cushing origin, the Voyager Pipeline would provide shippers optionality to originate deliveries from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions and from Navigator’s Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub. Additional storage and operational capabilities to move other grades of crude oil and condensate to the Gulf Coast are also being evaluated.

The Midland origin would enhance the project’s supply flexibility from the prolific Permian Basin. As a result, facility options consistent with shipper demand are being reviewed, which could include the repurposed use of existing Magellan pipeline and rights-of-way, new-build pipeline or a combination of both.

At the destination, Magellan’s comprehensive Houston crude oil distribution system could further deliver the multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.

As proposed, the Voyager Pipeline is expected to have an initial capacity of up to 400 000 bpd, with the ability to expand if warranted by industry demand. Subject to receipt of sufficient customer commitments and all necessary permits and approvals, the pipeline is expected to be operational in early 2021.

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