US Magellan begins shipping crude oil through reversed pipeline

16 April 2013 22:13  [Source: ICIS news]

(Recasts and adds paragraph 2)

HOUSTON (ICIS)--US-based Magellan Midstream Partners said on Tuesday that it is beginning commercial operations of its partially reversed Longhorn pipeline, which was converted to transport crude oil from Crane in west Texas to Houston.

“We believe the Longhorn system represents the most direct and cost-efficient route to safely deliver growing west Texas crude oil production to the refineries in the Houston and Texas City area, providing alternative transportation options that will help alleviate the current crude oil oversupply situation in Cushing, Oklahoma,” said company spokesman Bruce Heine.

“We began shipments over the weekend from our terminal in east Houston to a third-party pipeline. We expect to begin deliveries into our Houston distribution system later this week,” he added.

Magellan expects to transport an average of 75,000 bbl/day during the first 45 days of operations, Heine said.

Transportation volume will increase to 135,000 bbl/day in the subsequent months before operating at the full commercial service level of 225,000 bbl/day in the third quarter of 2013, he added.

The Longhorn pipeline transports refined products from Houston to El Paso. The conversion involves reversing the flow for crude oil transportation on a portion of the system between Crane and Houston.

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By: Tracy Dang
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