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Magellan Midstream, Occidental to build West Texas oil pipeline

HOUSTON -- Magellan Midstream Partners and Occidental Petroleum will build a pipeline to bring up to 300,000 bopd of West Texas crude oil to the Houston refining hub.

The project is the latest attempt to bring the increasing supply of crude oil being produced in the U.S. Midcontinent region to market. New drilling methods have led to a gusher of new supply, but a lack of pipelines has meant much of the oil remains trapped at the wellhead.

Magellan and Occidental' s BridgeTex pipeline will run 400 mi  Colorado City, Texas, in the oil-rich Permian Basin to Magellan' s 1.4 million-barrel oil terminal in East Houston for further transport to refineries in Houston and Texas City. The pipeline is scheduled to begin service in 2014, Magellan said.

Dow Jones Newswires

11/19/2012

 

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