Magellan Midstream Partners LP (NYSE: MMP) has canceled plans to develop a stand-alone crude pipeline West Texas, the area of the nation’s top oil field as it considers a lower-cost project for the same region, an executive said on Jan. 31.
The Tulsa-based company plans to pursue a lower-cost project to meet shipper needs in an effort to be more capital efficient, its CEO told investors on a conference call.
“It would be a much, much lower capital investment, and it would be a much more efficient way for us to source barrels into Longhorn [pipeline] for our customers,” Magellan CEO Michael Mears said.
In 2017, Magellan estimated that the pipeline would cost $150 million. A write off of expenditures related to the project reduced fourth-quarter distributable cash flow by $9 million, an executive said on the call.
The Tulsa, Oklahoma-based pipeline operator had said in 2017 it would build a 60-mile pipeline from Wink to Crane, Texas to supply crude to its large, 275,000-barrel-per-day Longhorn crude pipeline. That line runs from the Permian Basin in West Texas to refining and export facilities in Houston.
Republican and Democratic U.S. senators on Feb. 7 unveiled a resolution calling for the cancellation of Russia's Nord Stream 2vnatural gas pipeline, a link under the Baltic Sea from Russia to Germany.
A flotilla loaded with about 7 million barrels of Venezuelan oil has formed in the Gulf of Mexico, some holding cargoes bought ahead of the latest U.S. sanctions on Venezuela and others whose buyers are weighing who to pay, according to traders, shippers and Refinitiv Eikon data.
WaterBridge bolstered its Southern Delaware Basin position by acquiring all of Concho Resources’ produced water assets in the region.