The biggest may be getting bigger. Magellan Midstream Partners LP already owns the longest refined petroleum products pipeline system in the country and continues to expand. It announced, then extended, an open season for a new, 160- mile, 12-inch pipeline capable of transporting 75,000 barrels (bbl.) per day of gasoline, diesel fuel and jet fuel from the partnership’s Fort Smith, Arkansas, terminal, to Little Rock, Arkansas.
The proposed line would give Little Rock access to product pipeline service currently lacking. If there is interest, the pipeline could be in service by third-quarter 2015, subject to permit and regulatory approvals. In a second project, Magellan announced an expansion to its Longhorn Pipeline. The crude line’s expansion comes with a new origin point that will be added onto the existing line. The new origin will be located in Barnhart, Texas, which is approximately 75 miles east of the pipeline’s current Crane, Texas, origin. The $25-million project is estimated to be in service by early 2015.
The company also plans to expand overall capacity of the line by an additional 50,000 bbl. per day, bringing future capacity to a total of 275,000 bbl. per day. The expansion is awaiting regulatory approval, but if all goes well, it could be operational by mid-2014.
In other announced construction projects, HEYCO Energy Group plans a 150,000 gallon per-day liquefied natural gas facility in Lavaca County, Texas. It will serve Eagle Ford drilling and completion projects.
Also coming up is Nuevo Midstream’s 200 million cubic feet (MMcf) per-day cryogenic processing plant in Orla, Texas. The Nuevo plant, Ramsey III, is currently under construction, the second the company has constructed in the area in the past few years. It is expected to be completed in 2015, bringing total processing capacity to 310 MMcf per day.
Downstream, Rock River Resources will break ground this quarter on a $230 million, 10,000 bbl. per-day refinery and rail terminal outside Green River, Utah. The rail terminal is scheduled to enter service in 2014, with the refinery producing distillates in 2015.
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