March 25 Magellan Midstream Partners has
started storing crude oil in tanks at Crane, Texas, the origin
point for the Longhorn pipeline, which it expects to start
transporting crude by mid-April, the company said on Monday.
It said it is making final preparations before beginning the
line fill, which will amount to about 800,000 barrels on the
225,000 barrels-per-day (bpd) pipeline.
The line, which had carried refined products, has been
reversed to transport crude to Houston refineries. It could help
ease a glut of oil at delivery hub Cushing, Oklahoma, and
support local oil prices by opening the door to new buyers.
Magellan had previously said it expected the line fill to
start in mid-March. Despite the apparent delay in the line fill,
the company still expects operations to begin in mid-April.
Magellan previously said it would begin transporting around
75,000 barrels through the 450-mile (724 kilometer) line and
ramp up to full capacity by the third quarter of 2013.
The company reiterated it was looking into expanding the
capacity of the pipeline by 70,000 bpd.