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 Reuters.com