Open season extended for Cushing-to-Houston crude oil pipeline
Published by Lydia Woellwarth,
Editor
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 various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas. Binding commitments are now due by 12.00 pm Central Daylight Time on 31 May 2019. Significant interest continues to be expressed from potential shippers, particularly those reaching Voyager from connecting carriers in multiple producing regions. The extension provides these shippers additional time to finalise their commitments across multiple pipelines and evaluate a new origin point near Midland, Texas.
The proposed Voyager Pipeline would include construction of nearly 500 miles of 20 in. or 24 in. diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. At the Cushing origin, the Voyager Pipeline would provide shippers optionality to originate deliveries at Cushing from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions, Navigator's Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub.
At the request of potential shippers, the sponsors are evaluating the addition of a Midland origin to provide further supply flexibility from the prolific Permian Basin. The Midland origin could be accomplished in part through Voyager's use of an existing Magellan pipeline that may be idled in the near future as part of Magellan's announced West Texas refined products pipeline expansion project. Voyager would have the ability to utilise an existing Magellan terminal in Frost to construct assets and connect to the Cushing-to-Houston segment.
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 at least 300 000 bpd with the ability to expand further if warranted by industry demand. Subject to receipt of sufficient customer commitments and all necessary permits and approvals, the pipeline is planned to be operational in late 2020.
Read the article online at: https://www.worldpipelines.com/project-news/01042019/open-season-extended-for-cushing-to-houston-crude-oil-pipeline/
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