May 06, 2019 [San Francisco Chronicle] – Magellan Midstream Partners is enhancing its refined products pipeline infrastructure, and Midland stands to benefit.
The Tulsa-based company has announced plans to construct a $30 million refined petroleum products storage and distribution terminal in Midland on 30 acres it owns at 1407 S. County Road 1140.
Construction is expected to begin immediately with operations beginning in mid-2020. Bruce Heine, vice president, government and media affairs, told the Reporter-Telegram by email the terminal will create four full-time jobs and approximately 100 indirect jobs associated with the construction.
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 sulfur diesel fuel with three state-of-the-art loading bays.
Even though construction has yet to begin on, 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,” Heine said.
The new terminal is the result of Magellan’s plans, announced in mid-2018, to expand the capacity of the western leg of its Texas refined products pipeline system from 100,000 barrels per day to 175,000 barrels per day to accommodate increasing demand for gasoline and diesel fuel in the region.
Mike Mears, Magellan chief executive officer, told investment analysts during the company’s first quarter earnings call last week that enough commitments had been received to build the terminal. He also said the company will be expanding its pipeline capacity from Houston to Hearne and from Hearne to Alexander and to West Texas and New Mexico. Construction is already underway on the new East Houston-to-Hearne pipeline, with operations expected to begin in late August.