Magellan Midstream Partners LP plans to construct a new pipeline origin point at Barnhart, TX, to accept crude oil shipments on the partnership's Longhorn pipeline. The new point will be 75 miles east of the pipeline's Crane, TX, origin and is expected to begin receiving crude oil in early 2015. The project is expected to cost about $25 million. Magellan also plans to expand the capacity of Longhorn by 50,000 b/d to an increased capacity of 275,000 b/d, all fully committed by long-term customer agreements. Subject to regulatory approval, operating capacity is expected to reach 275,000 b/d by mid-2014, with the expansion estimated to cost $55 million. "Customer demand continues to be strong to deliver Permian Basin crude oil to the Gulf Coast refining region," said CEO Michael Mears.
NuStar Energy LP affiliate NuStar Crude Oil Pipeline LP has struck binding commitments for all of the Phase 1 capacity of its South Texas Crude Oil Pipeline System project during a recent open season (see Shale Daily, July 24). NuStar said it continues to receive interest in Phase 2 of the project and will evaluate whether to proceed with this phase of the project. The South Texas Crude Oil Pipeline System transports Eagle Ford Shale crude oil from several terminal locations in Frio, McMullen, and La Salle counties to NuStar's Corpus Christi North Beach facility. The project includes pipeline capacity upgrades to the segments of the system between NuStar's Gardendale Terminal in La Salle County, TX and NuStar's Corpus Christi North Beach Terminal in Nueces County, TX. The first phase will add incremental throughput capacity to the system of about 35,000 b/d and is expected to be available for service to committed shippers in the third quarter of 2014. If NuStar decides to proceed with the second phase of the project, it will add incremental throughput capacity of 65,000 b/d and could be available as early as the first quarter of 2015.