Crude volumes on BridgeTex pipeline seen up 16 pct this year -Magellan
HOUSTON (Reuters) - Magellan Midstream Partners LP expects crude volumes this year to increase 16 percent on the BridgeTex pipeline to accommodate shipments of more oil from the Permian Basin of West Texas and New Mexico, the largest U.S. oilfield, to exporters and refineries in the Houston Gulf Coast area, executives said.
The pipeline, which moves crude oil from Midland and Colorado City, Texas, to East Houston, Texas, is expected to average about 315,000 barrels-per-day (bpd), up from about 270,000 bpd all of last year, executives said on the company’s earning call on Thursday.
The pipeline was recently expanded from 300,000 bpd to a capacity of 400,000 bpd. Magellan is expanding the pipeline system again, for a new capacity of about 440,000 bpd, expected to be operational in early 2019.
The company recently set new committed shipping rates to move crude on the line after it completed a supplemental open season and secured additional volume commitments for the new expansion capacity.
BridgeTex is co-owned by Magellan and Plains All American Pipeline LP.
Meanwhile, flows on Magellan’s Longhorn pipeline, which ferries crude from Crane, Texas to Houston, are forecast to average 260,000 bpd, similar to 2017 levels.
However, existing term contracts are set to expire in the fourth quarter. Negotiations with customers regarding shipment rates are currently underway, said Chief Executive Michael Mears.
“We would err to recontract at rates that are secure for term commitments rather than be exposed to whatever the differential is at any point in time with spot tariffs,” he said. (Reporting by Bryan Sims; Editing by David Gregorio)
The US Energy Information Administration (EIA) reported in April that the US set records for natural gas production in 2017.
- Energy Web Atlas
Since market reforms first started in 1978, China has shifted from a centrally planned economy to a market-based economy, experiencing rapid economic and social development.
Russia aims to ally with Qatar in LNG competition with Australia and other LNG-exporting majors over the coming years.
Maximize Profitability with Advanced Analytics at Natural Gas Processing Plants
Incorporating economic data into process modeling is key to optimizing operations and maximizing profits at gas processing plants. However, maintaining optimal operations are often challenging due to changing market dynamics, contract structures and increasing process flexibility. Today, gas processors are leveraging Predictive Control and First Principles models to accurately determine and control the optimal operating targets in real time based on the most current plant conditions and profitability, optimizing recovery of natural gas liquids. Learn how real-time analytics, combined with decision support tools, empower companies to:
•Improve processing margins by up to 5%
•Maximize NGL production through improved availability and optimized process conditions
•Improve compositional control to operate closer to product specifications
May 22, 2018 10am CDT