NEW YORK, Sept 2 (Reuters) - Magellan Midstream Partners’ has sold nearly 90 percent of the capacity on its 300,000 barrel-per-day BridgeTex oil pipeline, which starts up later this month, the company’s chief executive said on Tuesday.
BridgeTex, which is expected to become a key supply route to alleviate a glut of crude oil in the Permian Basin, will run from Colorado City, Texas, to refineries on the Gulf Coast near Houston.
Capacity not booked will be used for short-term “spot” shipments, Mike Mears, Magellan Midstream Partners LP chief executive, said at the Barclays CEO Energy Power Conference in New York City.
The company had two open seasons to promote shipper interest in using the line, the first generating about 75 percent of capacity and the second bringing it closer to 90 percent, Mears said.
Reporting by Jarrett Renshaw; Editing by Dan Grebler