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Potential Cushing-to-Houston Crude Oil Pipeline

Courtesy of Oil & Gas 360

Magellan Midstream Partners, L.P. (NYSE: MMP) and Navigator Energy Services announced today the launch of an open season to jointly assess customer interest to transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas. All potential customers must submit binding commitments by 12:00 p.m. Central Time on Jan. 31, 2019.

The proposed Voyager pipeline would include construction of nearly 500 miles of 20-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 basins 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 Magellan’s Seabrook Logistics joint venture terminal.

The potential pipeline system is expected to have an initial capacity of at least 250,000 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 by the end of 2020.

In addition, Magellan is currently evaluating a potential crude oil pipeline from Houston to Corpus Christi, Texas and a crude oil export terminal on Harbor Island in Corpus Christi capable of loading VLCCs, or very large crude carriers, which may be of interest to potential committed shippers.

 

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