New Permian Pipeline System to Houston Planned

Energy Transfer Partners, Magellan Midstream Partners and others are teaming up on a new, 600-mile Permian pipeline system to Houston.
Energy Transfer and Magellan are partnering with Israel’s Delek Group and Ohio-based MPLX,  Marathon Petroleum’s pipeline business, to fund the construction of the multibillion-dollar pipeline project. 
This Permian Gulf Coast Pipeline system would add another major project to the race to build crude oil pipelines from West Texas’ booming Permian Basin to refining and export hubs in Houston, Corpus Christi and Beaumont.
Oil drilling and well completions activities are slowing in the Permian because of the lack of pipelines to carry the oil. More companies are relying on trucks and trains to move the crude until new pipelines start coming online in the middle of 2019.
This new Permian Gulf Coast project would stretch to Magellan’s East Houston terminal and to Energy Transfer’s Nederland terminal near Beaumont. The pipeline would come online in mid-2020, according to the companies.
Photo courtesy of Magellan Midstream Partners.
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