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)
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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