15.01.16. Magellan Midstream Partners and TransCanada Corporation have announced plans to connect TransCanada’s Houston tank terminal to Magellan’s East Houston facility.
HoustonLink Pipeline Company, LLC, a new company owned 50/50 by Magellan and TransCanada, will construct, own and operate a 9 mile, 24ins crude oil pipeline connecting the terminals. The new pipeline will provide TransCanada’s Keystone and Marketlink customers with access to Magellan’s Houston and Texas City crude oil distribution system.
The joint project, first announced in April 2015, is estimated to cost US$50 million. In addition, Magellan and TransCanada plan to develop additional infrastructure at their respective Houston area terminals to accommodate shipments from the new pipeline. Magellan will serve as construction manager and operator for HoustonLink.
The pipeline is expected to be operational during the first half of 2017, subject to necessary rights-of-way, permits and regulatory approvals.
15th January 2016
