Magellan Midstream Partners, L.P. plans to construct a new origin at Barnhart, Texas to accept crude oil shipments on the partnership's Longhorn pipeline. The new origin, which will be located approximately 75 miles east of the pipeline's Crane, Texas origin, is expected to begin receiving crude oil in early 2015 and cost approximately $25 million.

Further, Magellan plans to expand the capacity of the Longhorn pipeline by 50,000 barrels per day (bpd) to an increased capacity of 275,000 bpd, all fully committed by long-term customer agreements. Subject to regulatory approval, the operating capacity of the Longhorn pipeline is expected to reach 275,000 bpd by mid-2014, with the expansion estimated to cost approximately $55 million.

Tags: Magellan Midstream Partners