Open Season Announced for Saddlehorn Pipeline Expansion

Saddlehorn Pipeline Company, LLC has announced the expansion of Saddlehorn pipeline and has launched an open season to solicit long-term commitments for capacity on the pipeline system. The company will also add the new Ft. Laramie origin by leasing capacity on third-party pipelines.

The pipeline’s current transportation capacity is 190,000 barrels per day of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains. The expansion will increase pipeline’s capacity by up to 100,000 barrels per day, which will mark a new total capacity of 290,000 barrels per day.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020. The company announced that interested customers must submit binding commitments by 12:00 p.m. Central Time on 31 July, 2019.

Source:
worldpipelines

Open Season Extended for Cushing to Houston Voyager Pipeline

An extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline was announced by Magellan Midstream Partners, L.P. and Navigator Energy Service. The pipeline will transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas.

The pipeline would include construction of nearly 500 miles of 20 in. or 24 in. diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. Binding commitments are now due by noon of 31 May 2019 CDT.

At the Cushing origin, the Voyager Pipeline would provide shippers option 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 multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.

The pipeline is expected to have an initial capacity of at least 300,000 bpd and it is planned to be operational in late 2020, subject to receipt of sufficient customer commitments and all necessary permits and approvals.

Source:
worldpipelines

600-Mile Permian Gulf Coast Pipeline to Cost Nearly $2 Billion

Magellan Midstream Partners LP projected on Wednesday it would spend nearly $2 billion to construct a proposed crude oil pipeline from the Permian Basin in West Texas to the U.S. Gulf Coast. 

"We have binding commitments that give us very attractive economics. But what we don't know is the full demand," which would dictate the project’s final cost, Magellan's chief executive Michael Mears said at the Barclays energy conference in New York. 

The project cost for the Permian Gulf Coast pipeline won’t be made clear until after shippers commit to volume capacity during the open season, Mears said. The bidding process for additional shipper commitments will be launched later this week.

The new partnership by Magellan, Energy Transfer Partners, and others adds another project to the race to build crude oil pipelines from West Texas’ booming Permian Basin to refining and export hubs in Houston, Corpus Christi, and Beaumont.

Due to the lack of pipelines carrying oil, Permian oil drilling and well completions are slowing down. Until new pipelines start coming in the middle of 2019, companies are relying on trucks and trains to move crude.

The pipeline would come online in mid-2020 and would stretch to Magellan’s East Houston terminal and to Energy Transfer’s Nederland terminal near Beaumont.

Source:
Reuters

Magellan Suspends Pipeline Service Due to Houston Flooding

Magellan Midstream Partners reported Friday that it has temporarily closed a portion of its petroleum pipeline system in Houston as a safety precaution due to flooding in the area.

The pipeline runs through Spring Creek near Spring, Texas and provides transportation services for gasoline, diesel, and jet fuel from the Gulf Coast refineries to central, northern, and west Texas distribution terminals.

Affected areas from the temporary closure include areas north of the facility, particularly the Dallas area and other areas in West Texas such as Odessa and El Paso. Alternative routes are being sought while the closure is in effect.

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Fuels News