Bloomberg News

Magellan Expects Oil in Reversed Longhorn Pipe by Early 2013

October 27, 2011

(Adds expansion of Texas crude pipeline system starting in fifth paragraph. Run BMAP 4321 <GO> for a map of Magellan pipelines.)

Oct. 27 (Bloomberg) -- Magellan Midstream Partners LP expects oil to flow by 2013 through a portion of the Longhorn pipeline which it’s reversing.

“We should be moving crude in that pipe by early 2013, if not slightly before,” Scott Devers, Magellan’s director of crude oil transportation and storage, said today at the Crude Oil Quality Association conference in Tulsa, Oklahoma.

Magellan, based in Tulsa, announced Sept. 1 it would proceed with the reversal of a portion of the Longhorn pipeline that runs between Houston and El Paso, Texas, and convert the line to transport crude oil.

The 18-inch pipeline, which currently carries refined products, would have an initial capacity of 135,000 barrels a day after the reversal, Magellan said in the September statement.

Enbridge Inc. is also in the process of expanding 26- and 20-inch pipelines that distribute crude oil to refineries along the Houston Ship Channel and Texas City, Texas, Devers said.

“When we are completely done, we will be able to deliver to every refinery along the Houston Ship Channel and Texas City” except for ConocoPhillips’s Sweeny, Texas, refinery, he said.

--Editors: Margot Habiby, David Marino

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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