Magellan Midstream Partners has acquired a 15-mile, 16-inch Houston area pipeline from Shell. The pipeline is bi-directional, with capacity of 150,000 b/d.
The pipeline moves crude from Genoa Junction to/from a Magellan terminal in East Houston.
The company stated, “The West Columbia pipeline will provide an additional route for crude oil, particularly barrels from the Eagle Ford, to reach our East Houston terminal for storage or subsequent delivery into Shell’s reversed Ho-Ho system.”
The 300,000 b/d Ho-Ho system allows for connection to refineries in Louisiana. Read more about Shell’s reversed Ho-Ho system in the article – Shell Reversing Houma to Houston Pipeline
Neither Magellan Midstream nor Shell released the financial details of the transaction.