Energy Transfer Partners is teaming up with Magellan Midsteam Partners and others as they plan a new 600-mile Permian pipeline system to Houston.
Dallas-based Energy Transfer and Oklahoma’s Megellan said they have partnered with Israel’s Delek Group and Ohio-based MPLX, which is the pipeline arm of Marathon Petroleum, to fund the construction of the multibillion-dollar pipeline project. They have confirmed that they have enough customer support to move forward.
The new partnership 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.