Magellan Pipeline to Corpus Christi Loses Interest

Magellan might have been a little late to Eagle Ford Shale Pipeline party. The company mentioned in its earnings release that momentum had been lost in getting an $80 million project planned to move Eagle Ford crude to Corpus Christi. The company says it is working on a quicker solution to connect Corpus Christi, but this might be the first sign that the initially proposed pipeline will not be built.

“With regard to the Eagle Ford pipeline project we previously announced, we are no longer working with momentum but we are in discussions with other third parties with regard to a much more cost efficient and faster market solution to transport Eagle Ford production to Corpus Christi,” a company spokesman said during the second-quarter conference call.

The Eagle Ford Shale formation in south Texas holds about 3.35 billon barrels of crude oil.

In July, the Eagle Ford formation produced 160,000 barrels per day, up from the 71,000 bpd in May, according to oil consultants Bentek, with some analysts expecting production eventually to ramp to as much as 420,000 bpd.

“Again we are talking to third parties about a project that will get us to Corpus Christi at a lower cost and much quicker than a new build from the production area to the Gulf,” the company said.

Read the full news release at

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Kenneth E. DuBose

Kenneth E. DuBose

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas operator. He began his energy industry career with ARCO Oil & Gas. Mr. DuBose then directed development of natural gas storage projects with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Torch Energy in 1999) a provider of internet based education for America’s mineral owners. Mr. DuBose holds a BS in Petroleum Engineering from Mississippi State University. He has served on various industry steering committees, non-profit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, Kiplinger’s, Kiplinger’s Personal Finance, Houston Business Journal, Financial Advisor and various radio and TV outlets.