Magellan Midstream Partners, L.P. (NYSE: MMP) and Navigator Energy Services announced on Jan. 31 an extension of the open season to solicit commitments from shippers for the potential new Voyager pipeline to transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston.
Binding commitments are now due by 12:00 p.m. (cst) on March 29, 2019. Significant interest has been expressed from potential shippers, particularly those reaching Voyager from connecting carriers. The extension provides these potential shippers additional time to finalize their commitments across multiple pipelines.
The proposed Voyager pipeline would include construction of nearly 500 miles of 20- or 24-inch diameter pipeline from Magellan’s terminal in Cushing to Magellan’s terminal in East Houston. At the 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 destination, Magellan’s comprehensive Houston crude oil distribution system could further deliver the product to all refineries in the Houston and Texas City area or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.
The potential pipeline system is expected to have an initial capacity of at least 300,000 barrels per day 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 proposed pipeline is planned to be operational in late 2020.
For customer inquiries or additional information about the Voyager pipeline open season, please contact Brant Easterling of Magellan at (918) 574-7665 or firstname.lastname@example.org. More information about the open season is available at https://www.magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx.
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