Magellan to Expand Crane-to-Houston Pipeline to 225,000 BPD

Magellan Midstream Partners LP (MMP) will expand the capacity of its Crane, Texas, to Houston crude-oil pipeline to 225,000 barrels a day, according to a statement from the company.

The expanded capacity is fully committed with long-term agreements, according to the statement. The pipeline will move oil production from West Texas to refineries in Houston and Texas City, Texas, and help “alleviate the current crude oil oversupply situation in Cushing, Oklahoma,” Michael Mears, the company’s chief executive officer said in the statement.

Magellan, based in Tulsa, Oklahoma, announced Sept. 1 it would proceed with the reversal of a portion of the Longhorn oil-products pipeline that runs from Houston to El Paso, Texas, and convert it to transport crude oil.

The reversed Crane-to-Houston portion of the pipe is expected to begin operation at an initial capacity of 135,000 barrels a day early next year. The pipe will ramp up to the expanded capacity of 225,000 barrels a day by mid-2013, the company said.

The project is estimated to cost $375 million, including the capacity expansion, according to the statement.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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