Magellan Midstream Partners and Occidental Petroleum have joined forces to construct the BridgeTex Pipeline, a project that will transport Permian Basin crude oil from Colorado City, Texas, US, to the Houston Gulf Coast area.
Once complete, the new pipeline will have access to Houston Ship Channel refineries, Texas City refineries and other refineries along the Gulf Coast through third-party pipelines, and will transport about 300,000 barrels of crude oil per day.
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Pipelines out of the Permian now run mainly to the Cushing, Oklahoma, trading and storage hub, but new pipelines are being laid to carry crude oil to the Gulf Coast.
The scope of the project will include the construction of a 400 mile pipeline from Colorado City to Megellan’s terminal in East Houston, and crude oil storage facilities will be built in both cities.
The BridgeTex Pipeline is expected to be operational from mid-2014, subject to necessary approval.
About 50 miles of 24in pipeline will also be constructed between East Houston and Texas City.
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By GlobalDataMagellan will be the operator and construction manager of the pipeline project, which will be monitored by a joint project team.
The owner of the longest refined petroleum products pipeline system in the US, Magellan Midstream Partners has access to more than 40% of the nations refining capacity and is able to store 80 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the US, Middle East / North Africa and Latin America regions.
