Magellan to expand Texas petroleum pipeline

HOUSTON (ICIS news)--Magellan Midstream Partners said on Monday it will invest  $240m (€156m) in a refined petroleum products pipeline project to link its East Houston terminal with Port Arthur refineries in Texas.

The company said the pipeline, which will be capable of transporting 150,000 bbl/day of refined petroleum products, is supported by a 15-year agreement with Motiva Enterprises.

The project is expected to be fully operational by 2011, which is consistent with the completion of Motiva's Port Arthur refinery expansion, the company said.

In addition, Magellan said a pipeline connection will be added between the partnership's East Houston terminal and Motiva's existing Pasadena terminal.

Magellan it will host an analyst conference call on Tuesday to discuss the project.

($1 = €0.65)