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Wednesday, September 06, 2017 3:56:31 PM
Magellan Midstream Partners (MMP +0.8%) says it is starting construction of a new $150M Delaware Basin pipeline for crude oil and condensate.
The 60-mile pipeline, which will run from Wink to Crane in Texas, will serve as an origin to its Longhorn pipeline and have an initial capacity of 250K bbl/day, with the ability to expand to more than 600K bbl/day if needed to meet demand.
MMP also announces plans to jointly build with Valero Energy (VLO +0.6%) a 135-mile, 16-in. products pipeline from Houston to Hearne, Tex.
MMP plans to reverse an existing pipeline which will connect to the new pipeline segment, providing an incremental 85K bbl/day of refined products capacity originating from Houston for a nearly 50% increase to service the company's Texas, Mid-Continent and Little Rock, Ark., markets.
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