Magellan Midstream To Expand Crane-To-Houston Crude Pipeline Capacity

April 2012, Vol. 239 No. 4

Photo: Roy Bodden.

Magellan Midstream Partners, L.P. plans to expand capacity of its Crane, TX-to-Houston crude oil pipeline to 225,000 bpd. Based on Magellan’s open season, the expanded pipeline capacity is fully committed with long-term agreements.

Magellan had announced initiation of a project to reverse and convert to crude oil service its pipeline from Crane to its East Houston terminal with initial capacity of 135,000 bpd at a cost of $245 million. The project is now estimated at $375 million including the cost to expand the system to its maximum capacity of 225,000 bpd.

The partnership expects the reversed pipeline to begin transporting crude oil at partial capacity next year, ramping to its full 225,000-bpd capacity by mid-year.

Magellan may construct a pipeline segment or secure use of existing existing third-party infrastructure to transport crude oil from Midland to Crane, a distance of 50 miles, for delivery to the Houston area. The partnership estimates the pipeline segment would cost $70 million.