Magellan Midstream and Occidental Petroleum Corporation proceed with BridgeTex pipeline

Magellan Midstream Partners, L.P. and Occidental Petroleum Corporation announced today that they are proceeding with the construction of the previously announced BridgeTex Pipeline to transport Permian Basin crude oil from Colorado City, Texas to the Houston Gulf Coast area.

The BridgeTex Pipeline is supported by long-term transportation commitments received during its recent successful open season and has received a favorable order from the Federal Energy Regulatory Commission approving the tariff structure for the pipeline.

The BridgeTex Pipeline will be capable of transporting up to 300,000 barrels per day of crude oil, with access to Houston Ship Channel refineries, Texas City refineries and other refineries throughout the Gulf Coast via third-party pipelines. The BridgeTex Pipeline project includes construction of the following energy infrastructure:
* approximately 400 miles of 20-inch pipeline from Colorado City to Magellan’s terminal in East Houston;
* approximately 1.2 million barrels of crude oil storage at Colorado City and 1.4 million barrels of crude oil storage at East Houston to facilitate pipeline movements; and
* nearly 50 miles of 24-inch pipeline between East Houston and Texas City.
The BridgeTex Pipeline is expected to begin service by mid-2014, subject to necessary permitting.

A joint project team will oversee the BridgeTex Pipeline project, with Magellan serving as the construction manager and operator of the BridgeTex Pipeline.

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