Magellan Midstream Partners and TransMontaigne Partners said on Monday that they are jointly assessing the possible development of a new refined products pipeline in South Texas.
If it goes ahead, the project would include construction of an approximately 150-mile, 16-inch diameter pipeline capable of transporting 150,000 barrels per day (bpd) of gasoline, diesel fuel, propane and condensate from Magellan’s terminal in Corpus Christi, Texas, to TransMontaigne’s terminal in Brownsville, Texas.
The pipeline would supply Brownsville and other South Texas markets and could be used for onward delivery to Mexico via truck, rail or connections to pipelines owned by TransMontaigne and third parties.
Depending on demand, the pipeline capacity could be expanded to 250,000 bpd.
The pipeline could be operational by the end of 2018, subject to receipt of necessary permits, regulatory approvals and sufficient customer demand.
Magellan Midstream Partners owns the longest refined petroleum products pipeline system in the United States, with access to nearly 50 percent of the nation’s refining capacity. Its refined product pipeline system provides transportation, storage and distribution services in 15 states and includes an ammonia pipeline and terminals system which delivers ammonia from production facilities in Texas and Oklahoma to various points in the Midwest for use as an agricultural fertilizer.
TransMontaigne Partners provides integrated terminaling, storage, transportation and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products.
