Joint Venture to Expand Footprint in Colorado's DJ Basin

Black Diamond Gathering has entered into a pair of deals that will expand its oilfield footprint in Colorado's DJ Basin to 243,000 acres. Black Diamond Gathering is a joint venture between Noble Midstream Partners and Greenfield Midstream.

Recently Black Diamond and Noble Energy agreed to ship crude oil on the Saddlehorn Pipeline. The Saddle horn pipeline is a project led by Magellan Midstream Partners that connects shale basins in Powder River Basin Wyoming and DJ Basin in Colorado to storage terminals in Cushing, Oklahoma.

"This opportunity is a natural expansion of Black Diamond's strategic footprint, with the ability to realize economics further down the crude oil value chain while enhancing the all-in value proposition for our customers," Noble Midstream Partners CEO Brent Smolik said in a statement.

Noble Midstream Partners and Greenfield Midstream owns 54.4 percent and 45.6 percent of Black Diamond respectively. The joint venture owns and operates 240 miles of pipeline and has 390 million barrels of crude oil storage capacity.

Black Diamond's deal with Magellan gives the joint venture an option to buy a 20 percent stake in the Saddlehorn Pipeline. The 15-year deal expands Black Diamond's presence by 85,000 acres, giving the joint venture a 243,000-acre footprint in the DJ Basin.


Saddlehorn Pipeline Announced Capacity Expansion

Saddlehorn Pipeline’s successful open season during July and the subsequent increased volume commitments from shippers allowed Saddlehorn Pipeline Company, LLC to announce a further expansion on its pipeline. The pipeline’s capacity will be increased by a total of 100,000 barrels per day to a new total capacity of approximately 290,000 barrels per day.

Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P. and Western Midstream Partners, L.P. jointly owns the Saddlehorn pipeline. The pipeline is currently capable of transporting 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.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020.


Open Season Extended for the Proposed 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 Services. The pipeline will transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston.

The proposed Voyager Pipeline would include construction of 20 inch diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas and a 24 inch diameter pipeline would be constructed from Frost, Texas to Magellan’s terminal in East Houston.

The Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if necessary by industry demand. It is expected to be operational in early 2021, subject to receipt of sufficient customer commitments and all necessary permits and approvals. Binding commitments are now due by 12:00 pm CDT on 30 August 2019.


Open Season on Magellan Midstream's 500-Mile Voyager Pipeline to Be Extended

Magellan Midstream Partners LP and Navigator Energy Services are extending the open season to book capacity on the proposed Voyager Pipeline after they announced a significant rise in interest.

Binding commitments are now due on March 29.

The Voyager Pipeline is a proposed 500 mile pipeline project that will move crude oil and condensate from storage terminals in Cushing, Oklahoma to refineries and export terminals in Houston.

This project is a joint venture project that would include the construction of a 20-inch or 24-inch pipeline, which could move up to 300,000 barrels of crude oil and condensate per day from Magellan's terminal in Cushing to the company's terminal in East Houston.

At the Houston terminal destination, Magellan's pipeline network would be able to deliver crude oil and condensate to all refineries in the Houston and Texas City area or to crude oil export facilities.

Magellan said the Voyager Pipeline could be operational by late 2020, if approved by regulators and the project receives enough interest.


Magellan's Open Season for 500 Mile Pipeline Announced as Possibilities of New Houston to Corpus Christi Pipeline is Evaluated

Magellan Midstream Partners and Navigator Energy Services announced the launch of a binding open season on Monday to gauge customer interest in a pipeline project designed to ship light crude and condensate from Cushing, Oklahoma to Houston, Texas.

According to Magellan, the proposed Voyager pipeline would compromise of nearly 500 miles of 20-inch diameter pipe linking the company’s terminals in Cushing and East Houston. Once it reaches Houston, the pipe would link to refineries in the region as well as crude oil export facilities.

The open season documentation states that a new entity called “Magellan Navigator” would operate Voyager. Initial capacity is said to be at least 250,000 barrels per day and would handle up to four light crude and condensate grades.

Magellan also said that the company is evaluating a potential crude oil pipeline from Houston to Corpus Christi as well as a crude export terminal on Harbor Island with capabilities of loading very large crude carriers.

The open season ends January 31, 2019 with the pipeline beginning service by the end of 2020 pending a successful open season and regulatory process.

Rig Zone

Magellan Midstream to Expand Part of its Texas Refined Products Pipeline Following Successful Open Season

Magellan Midstream Partners said it plans to expand the western leg of its Texas refined products pipeline system to 150,000 barrels per day after a successful open season.

The additional 50,000-barrel-per-day expansion will handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland, and El Paso, Texas as well as to New Mexico and will be accomplished by an increased pipeline size along the existing route.

The expansion also includes connectivity to the ExxonMobil Pipeline Company's terminal in Wink, Texas.

Magellan expects to spend about $300 million on the project and said the expanded capacity is estimated to be available mid-2020.

Yahoo Finance

Magellan Midstream Fuel Pipeline Leaks 500 Barrels of Gasoline in Minnesota

Magellan Midstream Partners on Monday said it estimates a total of 500 barrels of gasoline leaked from its 12-inch pipeline system in Eagan, Minnesota.

The leak was caused by third-party excavation equipment, according to Magellan Midstream.

Several roads near the area were temporarily closed down, and some businesses in the immediate area were evacuated.

Emergency responders and regulators are on site, but Magellan said it does not yet have a definitive timeline for repairs to be complete.


Magellan Midstream Proposes New Permian-to-Gulf-Coast Pipeline for $1 Billion

Magellan Midstream Partners has announced plans to develop an estimated $1 billion pipeline system to carry crude and condensate from the Permian and Eagle Ford to the Gulf Coast.

The project would include constructing a new pipeline that would run approximately 375 miles from Crane, Texas to Three Rivers, Texas, where shippers could then opt to deliver crude to the Houston area via a new 200-mile pipeline or to Corpus Christi via a new 70-mile pipeline.

The pipeline system would have an initial capacity of at least 350,000 barrels per day and potentially expand to 600,000 barrels per day for each destination.

Magellan said it is considering additional extensions for Texas cities Midland and Orla, which would tie into its 60-mile Delaware Basin pipeline that is being built to carry crude from Wink, Texas to Crane, Texas.

The project is expected to be operational by the end of 2019.

Houston Chronicle

Plains All American Says Diamond Pipeline to Begin Operations in December

Plains All American executives said Tuesday that its Diamond crude oil pipeline is set to start operations in December with volumes ramping up early next year.

The pipeline, designed to move up to 200,000 barrels per day of domestic sweet crude from Cushing, Oklahoma to Memphis, Tennessee, was complete in late October and has started the commissioning process, according to the Plains executives.

The pipeline operator also said expansion projects on its BridgeTex crude pipeline were completed earlier this year and that downstream constraints on the pipeline related to a project by Magellan Midstream Partners are expected to be resolved early next year.

Magellan Midstream is building a 24-inch pipeline from its East Houston terminal to Holland Avenue to handle incremental volumes. The project is expected to be operational by early next year.


Magellan Midstream to Build 135-Mile Expansion to its Texas Refined Petroleum Pipeline

Magellan Midstream Partners announced today that it plans to build a 135-mile pipeline expansion to its refined petroleum pipeline system to accommodate a higher demand for gasoline, diesel fuel, and jet fuel to Texas markets.

Magellan will construct the pipeline from its terminal in East Houston to Hearne, Texas and will own the pipeline via an undivided joint interest agreement with Valero Energy Corp.

Magellan will be able to deliver additional product to Temple, Waco, and Dallas, Texas as well as to mid-continent markets like Little Rock, Arkansas.

Magellan plans to reverse an existing pipeline which will connect to the new pipeline and add an additional 85,000 barrels per day of refined products, or a 50 percent increase to service Magellan's previously mentioned markets.

Magellan expects the expansion to cost approximately $375 million for its share and plans for the expanded capacity to be available mid-2019.

PR Newswire

Magellan Midstream to Build 60-Mile Crude Oil, Condensate Pipeline in Delaware Basin

Magellan Midstream Partners is beginning construction of a 60-mile Delaware Basin crude oil and condensate pipeline for approximately $150 million, the company announced Tuesday.

The pipeline will originate in Wink, Texas and terminate in Crane, Texas, which serves as an origin to the company's Longhorn pipeline. The Wink pipeline will begin with a capacity of 250,000 barrels per day and have the ability to expand to more than 600,000 barrels per day.

Magellan will also build a new terminal at Wink which will offer inbound and outbound pipeline access to parties that connect to the facility.

The company expected the pipeline to be operational in mid-2019. Plans to conduct an open season for commitments on the Wink pipeline system will be set at a later time.

PR Newswire

Repairs Made to Ruptured Longhorn Pipeline; Operations Resumed

A Magellan Midstream Partners crude oil pipeline that burst last week has been repaired and is operating normally again as of Sunday afternoon.

The 275,000-barrel-per-day Longhorn pipeline was shut down last Thursday when it spilled 1,200 barrels of crude near Bastrop, Texas, south of Austin.

The leak occurred when a contractor accidentally hit a fitting while doing maintenance, according to Magellan Midstream Partners.

No injuries were reported when the leak occurred, but it caused the temporary evacuation of 15 residential homes.

Cleanup operations are still underway. No spilled oil reached water, according to the company.


Magellan Midstream Partners Pipeline Ruptures, Spills 1,200 Barrels of Crude in Texas

A Magellan Midstream Partners oil pipeline ruptured Thursday, spilling approximately 1,200 barrels, or 50,400 gallons, of crude near Bastrop, Texas and triggered an evacuation of nearby homes.

The Longhorn Pipeline, which transports crude oil from Crane, Texas to Houston, ruptured just south of Bastrop, Texas near Austin after a contractor doing maintenance hit a fitting, according to Magellan Midstream Partners.

The company said the spill has been contained and no oil reached water. The pipeline has been shut down, and cleanup efforts are underway.

People from about 15 residences were evacuated due to the spill but were authorized to return back home late Thursday evening, according to Magellan.

About 100 representatives were involved in cleanup efforts, and PHMSA dispatched an inspector to the site.


Magellan Midstream: Excavator Caused 47,000-Gallon Diesel Spill in Iowa

Oklahoma-based Magellan Midstream Partners announced that the January pipeline diesel spill in Iowa was caused by an excavator who did not check for underground utilities before digging.

The diesel fuel leak on the 127-mile pipeline was discovered on January 25 in Worth County, Iowa on private land during a snowstorm. At the time of the leak, Magellan Midstream could not identify the cause and said sensors used to notify an impact on the pipeline did not go off.

When the spill was first reported, an estimated 138,000 gallons of diesel were said to have spilled, but Magellan Midstream later announced that the real number was about 47,000 gallons.

Tom Byers, a spokesman for the company, told The Associated Press that the company has not yet taken any legal steps against the excavator and did not identify the excavator.


Magellan Midstream: Investigation Underway for 138,000 Gallon Diesel Pipeline Leak

Magellan Midstream Partners is investigating a 138,600-gallon diesel fuel leak from a pipeline rupture that occurred Wednesday morning in Worth County, Iowa.

The leak was reported by Magellan Midstream at 8:00am on Wednesday morning and has since been contained. The company is using vacuum and frack trucks to handle the fuel and will then remove the contaminated soil once the free-liquid diesel has been removed.

The 12-inch pipeline leaked on private agricultural land, but no surface water was contaminated, according to Iowa Department of Natural Resources (DNR). The group has not yet uncovered any underground water contamination.

Magellan Midstream spokesman Bruce Heine said the company does not know the cause of the pipeline rupture as nothing struck the pipeline and the sensors used to notify a pipeline impact did not go off.

No injuries or evacuations have been reported, and there is no threat to health risk, according to the Worth County Sheriff's Office.

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