Magellan to put down $240M for Houston-area projects

Houston Business Journal

Magellan Midstream Partners LP plans to invest $240 million to connect its East Houston terminal to Motiva Enterprises LLC's Port Arthur refinery.

The Tulsa, Okla.-based energy company will construct an 80-mile petroleum products pipeline from Port Arthur to its 8,500-mile pipeline system beginning near Galena Park.

Magellan (NYSE: MMP) expects the pipeline to be operational by 2011 and to be able to transport 150,000 barrels per day.

The project is supported by a 15-year agreement with Houston-based Motiva, according to Magellan.

The company also plans to add a pipeline connection between the East Houston terminal and Motiva's existing terminal in Pasadena.

Magellan's pipeline system already delivers product to three Motiva terminals in Hearne, Waco and Dallas.

In addition to the pipeline projects, Magellan also intends to expand infrastructure at the East Houston terminal to include construction of 1.2 million barrels of storage and three additional truck rack lanes by 2010.