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Magellan and TransCanada plan Houston terminal link pipeline

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Hydrocarbon Engineering,

Magellan Midstream Partners LP and TransCanada Corp., announced yesterday that they will build a pipeline to connect TransCanada's Houston tank terminal to Magellan's East Houston terminal.

The pipeline would give TransCanada’s Keystone and Marketlink shippers access to Magellan’s Houston and Texas City crude oil distribution system.

“Magellan is excited about the prospect of further enhancing our crude oil connectivity in the Houston market,” said Michael Mears, Magellan’s CEO, in a statement.

The move will provide more transportation and infrastructure options within Houston's refinery row, according to analysts.

The project includes construction of a 9 mile, 24 in. diameter pipeline, in which Magellan and TransCanada would have a 50/50 ownership interest.

The project is estimated to cost about US$50 million, and the pipeline is expected to be in operation by late 2016, pending certain agreements and approvals.

Edited from various sources by Elizabeth Corner

Sources: ReutersTulsa World

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