Magellan Midstream Partners LP (NYSE: MMP) will evaluate adding a new origin point near Midland, Texas, as it extends an open season of its proposed Voyager crude pipeline from the Cushing, Okla. storage hub to Houston, the company said on March 29.
The extension adds two months to the Voyager pipeline’s open season, which could draw shippers to a system with an initial capacity of at least 300,000 barrels per day.
The pipeline, up to 24 inches in diameter, would run 500 miles from its Cushing terminal to its East Houston terminal and is expected to come into service in late 2020.
At shippers’ requests, the Houston pipeline operator will evaluate adding a Midland origin point “to provide further supply flexibility” from the Permian Basin of West Texas and New Mexico.
Magellan has an existing pipeline near Midland that may be idled “in the near future” and utilize an existing terminal in Frost, Texas, to connect to the pipeline segment that runs from Cushing to Houston.
The announcement comes the same week that Magellan said the Permian Gulf Pipeline was unlikely to proceed as it was proposed, and cut its capital spending outlook by $450 million over two years as it exited the joint venture project.
Recommended Reading
Texas Freeport LNG NatGas Flows Fall to Near Zero Ahead of Hurricane Beryl
2024-07-08 - With Freeport down, gas flows to the seven big U.S. LNG export plants, including Freeport, was on track to drop to an 11-week low of 11.0 Bcf/d on July 8.
EIG Refinances $11B in Senior Debt for Aramco Pipeline Deal
2024-07-07 - EIG subsidiary Pearl Pipelines will use the proceeds to repay financing related to its $25.3 billion acquisition of 49% interest in Aramco Oil Pipelines Co. three years ago.
Waha’s Negative Gas Prices Set an Unwelcome, Painful Record
2024-09-03 - Analysts: Gas producers are weathering nearly a month of negative natural gas prices thanks to hedging, but they can’t hold out indefinitely.
Energy Transfer Confirms La Porte Fire, Report of 'Unknown' Vehicle
2024-09-16 - Energy Transfer acknowledged reports of a vehicle striking a valve on a natural gas liquids line, potentially leading to a large fire in La Porte, Texas, on the morning of Sept. 16.
AltaGas Prices $900MM Junior Notes Offer After Tidewater Deal
2024-09-17 - The offering follows AltaGas’ Aug. 31 announcement that it acquired multiple midstream, storage and terminals from Tidewater Midstream and Infrastructure Ltd. for CA$650 million (US$480 million).