Magellan Midstream Partners Will Spend $250 Million on Condensate Splitter

Magellan Corpus Christi Terminal
Magellan Corpus Christi Terminal

Magellan Midstream Partners announced in late March plans to build a condensate splitter and make infrastructure improvements to its' Corpus Christi terminal for $250 million. According to company officials, the splitter will be able to process 50,000 b/d of condensate, supported by a long-term commitment from commodities trader Trafigura AG.

This agreement will provide another outlet for producers of domestic crude and condensate. We believe Corpus Christi is advantaged over other locations and these investments, along with our other assets in the area, are critical to providing long-term solutions for the producers.
— Jeff Kopp, Trafigura AG’s director of North America oil trading.

The need for improved midstream and downstream infrastructure is growing to meet the demands of condensate production in the Eagle Ford. In 2013, the Texas Railroad Commission reported an average of 207,183 b/d of condensate from the play. In January of 2014, condensate production alone was 178,778. That's up drastically from 2011 and 2010 when condensate production was only 80,464 b/d and 18,784 respectively.

Our Corpus Christi terminal is ideally situated to receive condensate from the Eagle Ford shale, including shipments via our Double Eagle pipeline joint venture, and to offer flexible services and a variety of market options for our customer.
— Michael Mears, Magellan’s chief executive officer.

The project also includes construction of more than one million barrels of storage, dock improvements and two additional truck rack bays at Magellan’s terminal. Magellan pipeline connectivity between Magellan’s terminal and Trafigura AG’s nearby facility.

Magellan company officials anticipate the new splitter and infrastructure improvements to be operational during the second half of 2016.


Kinder Morgan & Magellan Expanding Eagle Ford System to Move Anadarko Crude & Condensate

Double Eagle Pipeline Eagle Ford System Map
Double Eagle Pipeline Eagle Ford System Map

Double Eagle Pipeline, a partnership between Kinder Morgan and Magellan Midstream, is expanding to move more crude and condensate to the Houston Ship Channel.

Double Eagle Pipeline has signed an agreement with Anadarko Petroleum to extend its pipeline system and connect with the KMCC Pipeline to move crude to the Houston Ship Channel.

Also read: Kinder Morgan Expanding Its Eagle Ford Crude & Condensate Pipeline Into Karnes County

Double Eagle is expected to spend approximately $45 million to add 160,000 bbls of storage and add a pump state at Gardendale, as well as build 10 miles of pipeline connecting the system to the KMCC System in Karnes County.

We are pleased that customer demand on the Double Eagle system is continuing to grow,” said Michael Mears, Magellan’s chief executive officer. “The increased connectivity for the Double Eagle system is in direct response to our customers’ desire to more efficiently supply additional condensate barrels to the Houston Ship Channel.
Kinder Morgan's KMCC and Double Eagle System Map
Kinder Morgan's KMCC and Double Eagle System Map

To service the Double Eagle addition, Kinder Morgan plans to add 240,000 bbls of storage at the KMCC's Helena Station.

Through Kinder Morgan's KMCC Pipeline oil moves to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

The KMCC pipeline system has capacity of 300,000 b/d and has been in operation since mid-2012.

Read more: Kinder Morgan Expanding Into Gonzales County

About Double Eagle Pipeline

The Double Eagle Pipeline includes 140 miles of 12-inch pipeline connecting to an existing 50-mile, 14- and 16-inch pipeline segment owned by Kinder Morgan extending from Three Rivers, Texas, to Magellan’s marine and storage terminal in Corpus Christi, Texas. The  capacity of the pipeline is 100,000 barrels per day, but can be expanded with additional pumps.


Magellan Midstream Buys West Columbia Pipeline From Shell

Magellan Houston System Map
Magellan Houston System Map

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.

Double Eagle Pipeline Moving Eagle Ford Condensate to Corpus Christi

Double Eagle Pipeline - Eagle Ford Condensate System
Double Eagle Pipeline - Eagle Ford Condensate System

Double Eagle Pipeline, LLC, a joint venture between Kinder Morgan and Magellan Midstream, has started moving condensate to Corpus Christi.

The pipeline is part of a project that was started by Copano and Magellan, but is operated by Kinder Morgan who purchased Copano earlier in 2013.

Condensate is moving from a truck unloading facility in Three Rivers to Magellan's Corpus Christi Terminal. From the Corpus Terminal, condensate can reach local petrochemical plants, as well as water borne export options.

This leg is just a portion of what is a $150 million project that includes 140 miles of 12-inch pipelines. The system connects with other Kinder Morgan pipelines in the area as well.

The next leg of the pipeline from Gardendale (near Cotulla) to Three Rivers is expected to be online in the third quarter of 2013. Initial capacity is planned at 100,000 b/d, but the system can be expanded to handle 150,000 b/d.

The pipeline was supported by long-term commitments from Talisman and Statoil.

Copano and Magellan Plan Eagle Ford Condensate Line to Corpus Christi

Copano Energy and Magellan Midstream are planning a midstream joint venture (Double Eagle Pipeline LLC) that will construct almost 150 miles of pipe to deliver condensate to Magellan's Corpus Christi marine terminal. Eagle Ford pipeline and midstream capacity will get a boost of 100,000 bbls/d when the system comes online. The system will also include a truck unloading facility near Three Rivers, TX. The two companies will also make improvements to existing facilities. Copano will convert a 50-mile natural gas pipeline to condensate and Magellan will add 500,000 bbls of storage at the Corpus Christi terminal.

Statoil and Talisman Energy who have joint development in the Eagle Ford are the primary shippers

"Magellan looks forward to joining forces with Copano for this project that provides significant strategic value for both parties and our customers," said Michael Mears, Magellan's president and chief executive officer. "Combined, we are able to provide an attractive option for shippers to deliver petrochemical quality Eagle Ford condensate for use in Corpus Christi or higher-valued Texas markets via Magellan's marine capabilities."

"This project represents the next logical step in Copano's strategy of offering a full set of midstream services to Eagle Ford Shale producers and we look forward to working with Magellan on this opportunity," said R. Bruce Northcutt, Copano's president and chief executive officer. "By combining Copano's pipeline assets with access to Magellan's terminal at Corpus Christi, the joint venture will be able to leverage existing infrastructure and provide producers timely access to market alternatives at very competitive rates. The joint venture will continue to look for ways to expand the project and capture other condensate and oil-related growth opportunities in the Eagle Ford Shale play."

Read the entire press release at