Reports related to this article:
Project(s): View 9 related projects in PECWeb
Plant(s): View 6 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Magellan Midstream Partners (NYSE:MMP) (Tulsa, Oklahoma) benefited from growing demand for its services, notably along the U.S. Gulf Coast, and stronger pricing in 2018, particularly during the fourth quarter. The company is moving forward on plans to develop its fee-based services for refined-petroleum products and crude-oil pipelines and terminals, as these were its most profitable areas in the past year. Industrial Info is tracking more than $3.3 billion in active projects involving Magellan, almost half of which is attributed to projects along the Texas Gulf Coast.
Click on the image at right for a graph detailing Magellan's active projects, by project type.
Among the most highly valued projects involving Magellan is the proposed Voyager crude-oil pipeline, which is designed to transport up to 250,000 barrels per day (BBL/d) of light crude and condensate from Magellan's South Terminal in Cushing, Oklahoma, to the company's East Houston Terminal. The estimated $375 million segment from Cushing to the Texas/Oklahoma border would run 188 miles, while the $750 million segment from the state border to eastern Houston would run 315 miles; both are scheduled to kick off in the third quarter and wrap up in late 2020.
"The open season for this proposed Voyager pipeline was just extended to the end of March," said Mike Mears, the chief executive officer of Magellan, in a recent earnings-related conference call. "Significant interest has been expressed from potential shippers, especially those planning to reach Voyager from connecting carriers. However, as is often the case, they need additional time to finalize their commitments across multiple pipelines." Mears said the extension should be viewed as "normal course of events. It's a very competitive market, and parties that are interested or considering commitments often times ask for more time."
He added: "Until we have commitments, we don't have a project. But we wouldn't be extending it, if we didn't think that there was a significant likelihood that we can get those commitments." For more information, see Industrial Info's project reports on the Oklahoma and Texas segments.
Also in Texas, Magellan and Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) are at work on the $150 million Houston-to-Hearne refined products pipeline, which is designed to transport more than 85,000 BBL/d of refined products from Houston-area refiners to distribution networks in Hearne, which would provide access to other markets in Texas, the Mid-Continent and Arkansas. The companies also are looking at a proposed, $200 million line from Hearne to Taylor, Texas, which would carry about 60,000 BBL/d. The lines would run 135 and 70 miles, respectively. For more information, see Industrial Info's project reports on the Houston-to-Hearne and Hearne-to-Taylor lines.
"Our new East Houston-to-Hearne pipeline is expected to add volume once placed into service in mid-2019," Mears said.
Magellan executives also noted progress on the proposed, $250 million refined-products pipeline expansion in West Texas, which comprises 390 miles of line to transport 45,000 BBL/d of refined products between Odessa and Frost, Texas. The project would be supported by an estimated $50 million pump station in Odessa. For more information, see Industrial Info's reports on the pipeline and pump station.
"Significant activity is also underway for our West Texas refined-products pipeline expansion, with right-of-way work in pipe steel production in process," Mears said. "Construction is expected to commence in mid-2019, with the West Texas expansion targeted to be operational in mid-2020."
Magellan also has three major terminal projects under construction on the Texas Gulf Coast:
Click on the image at right for a graph detailing Magellan's active projects, by project type.Among the most highly valued projects involving Magellan is the proposed Voyager crude-oil pipeline, which is designed to transport up to 250,000 barrels per day (BBL/d) of light crude and condensate from Magellan's South Terminal in Cushing, Oklahoma, to the company's East Houston Terminal. The estimated $375 million segment from Cushing to the Texas/Oklahoma border would run 188 miles, while the $750 million segment from the state border to eastern Houston would run 315 miles; both are scheduled to kick off in the third quarter and wrap up in late 2020.
"The open season for this proposed Voyager pipeline was just extended to the end of March," said Mike Mears, the chief executive officer of Magellan, in a recent earnings-related conference call. "Significant interest has been expressed from potential shippers, especially those planning to reach Voyager from connecting carriers. However, as is often the case, they need additional time to finalize their commitments across multiple pipelines." Mears said the extension should be viewed as "normal course of events. It's a very competitive market, and parties that are interested or considering commitments often times ask for more time."
He added: "Until we have commitments, we don't have a project. But we wouldn't be extending it, if we didn't think that there was a significant likelihood that we can get those commitments." For more information, see Industrial Info's project reports on the Oklahoma and Texas segments.
Also in Texas, Magellan and Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) are at work on the $150 million Houston-to-Hearne refined products pipeline, which is designed to transport more than 85,000 BBL/d of refined products from Houston-area refiners to distribution networks in Hearne, which would provide access to other markets in Texas, the Mid-Continent and Arkansas. The companies also are looking at a proposed, $200 million line from Hearne to Taylor, Texas, which would carry about 60,000 BBL/d. The lines would run 135 and 70 miles, respectively. For more information, see Industrial Info's project reports on the Houston-to-Hearne and Hearne-to-Taylor lines.
"Our new East Houston-to-Hearne pipeline is expected to add volume once placed into service in mid-2019," Mears said.
Magellan executives also noted progress on the proposed, $250 million refined-products pipeline expansion in West Texas, which comprises 390 miles of line to transport 45,000 BBL/d of refined products between Odessa and Frost, Texas. The project would be supported by an estimated $50 million pump station in Odessa. For more information, see Industrial Info's reports on the pipeline and pump station.
"Significant activity is also underway for our West Texas refined-products pipeline expansion, with right-of-way work in pipe steel production in process," Mears said. "Construction is expected to commence in mid-2019, with the West Texas expansion targeted to be operational in mid-2020."
Magellan also has three major terminal projects under construction on the Texas Gulf Coast:
- $335 million marine terminal for refined petroleum products and ethanol in Pasadena, which will feature at least 10 tanks; see project report
- $120 million terminal for refined products and crude oil in Corpus Christi, which will feature about 40 tanks; see project report
- $120 million addition of a crude-oil tank at a storage terminal for crude oil and condensate in Seabrook, which will add 16 tanks; see project report
