Magellan, TransCanada to build Houston crude pipeline connection

Magellan Midstream Partners LP and TransCanada Corp. reported definitive plans to connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal.

HoustonLink Pipeline Co. LLC, a new company owned equally by Magellan and TransCanada, will construct, own, and operate a 9-mile, 24-in. crude oil pipeline connecting the terminals. The new pipeline will provide TransCanada’s Keystone and Marketlink customers access to Magellan’s Houston and Texas City crude oil distribution system.

The joint project, first announced in April 2015, is estimated to cost $50 million. In addition, Magellan and TransCanada plan to develop additional systems at their respective Houston-area terminals to accommodate shipments from the new line. Magellan will serve as HoustonLink’s construction manager and operator.

The HoustonLink line is expected to be operational during first-half 2017, subject to the receipt of all necessary rights-of-way, permits, and regulatory approvals.

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