December 04, 2012 [Comtex News Network & Magellan Midstream] - Magellan Midstream Partners, LP, a company which transports, stores and distributes petroleum products, and Occidental Petroleum Corporation, or OPC, an oil and gas exploration and production company, have announced that they are proceeding with the construction of the BridgeTex Pipeline to transport Permian Basin crude oil from Colorado City, Texas to the Houston Gulf Coast area.
The BridgeTex Pipeline project includes construction of the approximately 400 miles of 20-inch pipeline from Colorado City to Magellan’s terminal in East Houston; approximately 1.2 million barrels of crude oil storage at Colorado City and 1.4 million barrels of crude oil storage at East Houston to facilitate pipeline movements; and nearly 50 miles of 24-inch pipeline between East Houston and Texas City.
The BridgeTex Pipeline will be capable of transporting up to 300,000 barrels per day of crude oil, with access to Houston Ship Channel refineries, Texas City refineries and other refineries throughout the Gulf Coast via third-party pipelines.
The BridgeTex Pipeline is expected to begin service by mid-2014, subject to necessary permitting. A joint project team will oversee the BridgeTex Pipeline project, with Magellan serving as the construction manager and operator of the BridgeTex Pipeline.
The BridgeTex Pipeline is supported by long-term transportation commitments received during its recent open season and has received a order from the Federal Energy Regulatory Commission approving the tariff structure for the pipeline.
The BridgeTex Pipeline System will have direct access to the following terminals, transportation hubs, and refineries:
1. East Houston Terminal
2. Magellan’s Galena Park Terminal via Holland Avenue Junction (subject to sufficient shipper interest in utilizing the facility)
3. Speed Junction
4. Genoa Junction
5. BP’s Texas City Refinery
6. Valero’s Texas City Refinery
7. Marathon’s Texas City Refinery
BridgeTex will provide operational tankage to segregate and batch crude oil pipeline movements:
At Colorado City, the BridgeTex Pipeline System will have approximately 1,000,000
barrels of breakout storage. This origin tankage would be capable of receiving from connecting parties for delivery into the BridgeTex Pipeline System. Shippers would be responsible for transportation arrangements for delivery to BridgeTex’s origin station terminal in Colorado City.
At East Houston, BridgeTex will construct approximately 1,400,000 barrels of breakout storage for the segregation of crude oil in order to stage crude oil deliveries into the Houston Gulf Coast area.
