BridgeTex linefill starts, August shipments slated

Operator Magellan Midstream Partners has begun filling the 300,000 b/d BridgeTex pipeline with crude ahead of plans to commission the line and start shipments in August, opening up one more lane for Permian basin crude to reach Houston, Texas.

Limited commercial operations will start in August on the line, the company said today. But full commercial service will not start until the first day of the month following the completion of all facilities necessary to support full service on the line or until 1 March 2015, whichever is earlier. Magellan officials were not immediately available to provide a definition of "full commercial service."

The pipeline is in the final stages of construction, the company said today in a statement. The company and joint venture partner Occidental Petroleum (Oxy) also plan to hold another open season for additional space on the line. The firms had been weighing whether or not to solicit more commitments on the line versus leaving more space for higher-priced spot shipments.

BridgeTex will move West Texas Intermediate (WTI) and West Texas Sour (WTS) crude from Colorado City, Texas to refineries, terminals and other pipelines in Houston and Texas City, Texas. The line was originally slated to begin operations in mid-2014.

Binding commitments are due on the pipeline's supplemental open season by 6pm ET 7 August.

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