Magellan Midstream Partners is to enhance its refined products pipeline and infrastructure projects, including the construction of a new refined products terminal in Midland, Texas. The $30 million terminal is expected to be operational in mid-2020, consistent with the startup of the west Texas pipeline.

The new terminal will be connected to Magellan’s refined products pipeline system, which provides refined products transportation to facilities in Odessa, Abilene, El Paso and New Mexico. The new terminal initially will offer approximately 400,000 barrels of storage for ultra-low sulphur diesel fuel with three state-of-the-art loading bays.

Even though construction has yet to begin, Magellan is already considering expansion. “We are actively considering future expansion plans at the facility for various octane grades of gasoline, renewable fuel and additional diesel fuel storage and distribution services,” Bruce Heine, Vice President, Government and Media Affairs told reporters.

Based on the progress of expansion projects underway, the partnership expects to spend approximately $1.1 billion in 2019 and $150 million in 2020 to complete its current slate of construction projects.

The initial phase of the partnership’s joint-venture marine terminal in Pasadena, Texas became operational during January 2019 with 1 million barrels of storage and a Panamax-capable dock. The second phase, representing an additional 4 million barrels of storage and supporting Aframax-capable dock and pipeline infrastructure, is expected to be in-service by the end of 2019.

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7th May 2019