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Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream operator Magellan Midstream Partners LP (NYSE:MMP) (Tulsa, Oklahoma) is busy with growth projects in both the terminals and pipelines sectors. The company recently completed a key refined products pipeline and has plans afoot for additional transport and storage capacity. Magellan expects capital expenditures (capex) of $1 billion in 2019 and $400 million in 2020.
In the company's recent third-quarter earnings conference call, Magellan Chief Executive Officer Michael Mears commented on the company's recently completed and underway projects. He said, "We began commercial operations for our new East Houston-to-Hearne [Texas] pipeline in mid-September. Magellan's refined products pipeline system in Texas has been in constraint for quite some time. And this project is Step One for us to increase our capacity to meet demand for gasoline and diesel fuel in the Texas and Midcontinent markets served by our system." Construction on the $150 million grassroot pipeline kicked off in the summer of 2018. The pipeline will transport more than 85,000 barrels per day (BBL/d) of refined products from Houston-area refiners to distribution networks in Hearne with access to other points in Texas as well as the Mid-Continent and Arkansas markets. Arseal (Alpharetta, Georgia) provided engineering and construction services. For more information, see Industrial Info's project report.
In the terminals sector, Magellan is approaching completion of an expansion of its petroleum products and ethanol terminal in Pasadena, Texas. The terminal is a joint venture with Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas). The project entails the construction of 4 million barrels of storage with supporting dock and pipeline infrastructure. The project is on track to be completed in December, but may be just one step in further expansions. Mears said, "Upon completion, we will have one-half of this facility built out and remain in the discussions with industry players to seek additional commitments to further build out this site." For more information, see Industrial Info's project report.
The company is expanding in other places along the Texas Gulf Coast. Mears said progress was continuing on the expansion of its crude oil and condensate terminal in Seabrook, Texas, which is on track to come online in 2020. The $120 million project entails constructing five new tanks. For more information, see Industrial Info's project report. As with its Pasadena terminal, Magellan may not be done with expansion and on Thursday announced plans to construct an additional 750,000 barrels of storage at the facility.
Outside of Texas, Magellan has plans to expand the capacity of its Saddlehorn crude oil pipeline, which runs from Colorado to Cushing, Oklahoma, by installing additional pump stations. The project will expand Saddlehorn's crude-carrying capacity by 100,000 BBL/d. Mears said, "The new capacity of 290,000 BBL/d is expected to be available in late 2020." The expansion will cost a little more than $100 million. Click here for a list of related projects.
Magellan still is ironing out the kinks in one of its biggest planned projects, the 500-mile Voyager crude oil pipeline, which will run from Cushing to Magellan's terminal in East Houston, Texas. Speaking of the pipeline, Mears said, "After the close of our open season in August, it became apparent to us that we will be only be successful with this project if we could develop a more capital-efficient solution than what was originally proposed. We have been actively working on this over the past few months with multiple parties, and we have made significant progress. The project as currently designed will require a fraction of the capital that was originally contemplated... While we still can't guarantee that the project will reach FID [final investment decision], we are significantly more optimistic that we will be successful with these new developments." For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the company's recent third-quarter earnings conference call, Magellan Chief Executive Officer Michael Mears commented on the company's recently completed and underway projects. He said, "We began commercial operations for our new East Houston-to-Hearne [Texas] pipeline in mid-September. Magellan's refined products pipeline system in Texas has been in constraint for quite some time. And this project is Step One for us to increase our capacity to meet demand for gasoline and diesel fuel in the Texas and Midcontinent markets served by our system." Construction on the $150 million grassroot pipeline kicked off in the summer of 2018. The pipeline will transport more than 85,000 barrels per day (BBL/d) of refined products from Houston-area refiners to distribution networks in Hearne with access to other points in Texas as well as the Mid-Continent and Arkansas markets. Arseal (Alpharetta, Georgia) provided engineering and construction services. For more information, see Industrial Info's project report.
In the terminals sector, Magellan is approaching completion of an expansion of its petroleum products and ethanol terminal in Pasadena, Texas. The terminal is a joint venture with Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas). The project entails the construction of 4 million barrels of storage with supporting dock and pipeline infrastructure. The project is on track to be completed in December, but may be just one step in further expansions. Mears said, "Upon completion, we will have one-half of this facility built out and remain in the discussions with industry players to seek additional commitments to further build out this site." For more information, see Industrial Info's project report.
The company is expanding in other places along the Texas Gulf Coast. Mears said progress was continuing on the expansion of its crude oil and condensate terminal in Seabrook, Texas, which is on track to come online in 2020. The $120 million project entails constructing five new tanks. For more information, see Industrial Info's project report. As with its Pasadena terminal, Magellan may not be done with expansion and on Thursday announced plans to construct an additional 750,000 barrels of storage at the facility.
Outside of Texas, Magellan has plans to expand the capacity of its Saddlehorn crude oil pipeline, which runs from Colorado to Cushing, Oklahoma, by installing additional pump stations. The project will expand Saddlehorn's crude-carrying capacity by 100,000 BBL/d. Mears said, "The new capacity of 290,000 BBL/d is expected to be available in late 2020." The expansion will cost a little more than $100 million. Click here for a list of related projects.
Magellan still is ironing out the kinks in one of its biggest planned projects, the 500-mile Voyager crude oil pipeline, which will run from Cushing to Magellan's terminal in East Houston, Texas. Speaking of the pipeline, Mears said, "After the close of our open season in August, it became apparent to us that we will be only be successful with this project if we could develop a more capital-efficient solution than what was originally proposed. We have been actively working on this over the past few months with multiple parties, and we have made significant progress. The project as currently designed will require a fraction of the capital that was originally contemplated... While we still can't guarantee that the project will reach FID [final investment decision], we are significantly more optimistic that we will be successful with these new developments." For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
