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Magellan to expand Longhorn pipeline by 50,000 bpd, add origin
October 7, 2013 / 4:07 PM / in 4 years

Magellan to expand Longhorn pipeline by 50,000 bpd, add origin

Oct 7 (Reuters) - Magellan Midstream Partners plans to add 50,000 barrels per day capacity to its Longhorn crude oil pipeline in Texas as well as a new point of origin, the company said on Monday.

The additional capacity, which will come online by mid-2014, will bring the pipeline’s throughput up to 275,000 bpd, the company said, subject to regulatory approval. The new capacity will cost $55 million.

All capacity has been committed to long-term customers, Magellan said.

Magellan will also add a new point of origin for the line, at Barnhart, Texas, which will come online in early 2015, at a cost of $25 million. The line currently runs from Crane, Texas to Houston, Texas.

The company reversed the Longhorn line earlier this year, enabling it to deliver crude from the Permian Basin to Houston. The project diverted crude that had been flowing into the Cushing, Oklahoma, oil hub to refineries on the Texas Gulf Coast, contributing to a decline in crude inventories at the hub.

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