UPDATE 1-Magellan adding crude pipeline, storage in Texas
HOUSTON Feb 4 (Reuters) - Magellan Midstream Partners is adding crude oil to its product slate at its Houston Ship Channel terminal with a new pipeline and terminal infrastructure, the company said on Monday.
Magellan currently provides storage and distribution for refined products, refinery feedstocks and heavy oil at its Galena Park terminal, spokesman Bruce Heine said. The $50 million project announced Monday highlights the addition of crude, he said.
The system will deliver crude to refineries in the Houston and Texas City areas, the company said. The new pipeline and terminal infrastructure, subject to permitting, has long-term volume commitments and is slated to be fully operational by mid-2014, Magellan said.
Heine declined to disclose the capacity of the new pipeline, but said crude would feed it from an existing pipeline.
He also declined to specify the type of crude that would run through the new line, noting that Magellan will provide segregated crude storage at Galena Park and can accommodate various grades.