12-05-08 Magellan Midstream Partners plans to build a 150,000 bpd pipeline to carry petroleum products from Motiva Enterprise's expanded refinery and other refineries in Port Arthur, Texas, to its terminal in East Houston, the partnership said.
The 80 mile, 16-inch diameter products pipeline, along with related projects, would cost $ 240 mm, Magellan said. The terminal at East Houston is the origin point for Magellan's 8,500 mile pipeline system.

The new pipeline is supported by a 15-year agreement with Motiva, which plans to expand operates its 275,000 bpd Port Arthur refinery to 600,000 bpd, Tulsa, Oklahoma-based Magellan said. The pipeline system is expected to be fully operational by 2011, keeping pace with the expansion of Motiva's refinery, Magellan said.
Magellan also plans to provide transportation services for other refiners in the Port Arthur area, it said.

A pipeline connection is also planned between Magellan's East Houston terminal and Motiva's Pasadena terminal, Magellan said. The partnership's pipeline system currently delivers product to three Motiva terminals in Hearne, Waco and Dallas, Texas, it said.
Magellan said it also plans to add 1.2 mm barrels of storage and three truck rack lanes at its East Houston terminal and 200,000 barrels of storage at its Frost, Texas facility. These efforts are expected to be fully operational by 2010, Magellan said.

The partnership also plans to add ethanol-blending capabilities and a third truck rack lane at its West Fort Worth terminal by the third quarter of this year and to expand loading capabilities at its Odessa terminal with the addition of two truck rack lanes by early 2009, it said.