BridgeTex Oil Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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BridgeTex Oil Pipeline is an oil pipeline in Texas, United States that transports crude oil from the Permian Basin to the Houston gulf coast.[1]

Location

The pipeline originates in Colorado City, Texas, and terminates in Texas City, Texas.[2]

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Mainline details

  • Operator:
  • Owner: BridgeTex Pipeline Company LLC[3]
  • Parent company: OMERS (50%), Magellan Midstream Partners (30%), Plains GP Holdings (20%) (via Plains All American Pipeline)[4]
  • Capacity: 300,000 barrels per day[5]
  • Length: 400 miles[1]
  • Diameter:
  • Status: Operating[5]
  • Cost: approximately US$1 billion[6]
  • Start year: 2014[1]


The mainline was originally owned by Magellan Midstream Partners (50%) and Occidental Petroleum Corporation (50%). In 2014, Occidental sold its interest in BridgeTex Pipeline Company LLC to Plains All American Pipeline for US$1.075 billion.[3] In 2018, the Ontario Municipal Employees Retirement System (OMERS) — a defined benefit pension plan for municipal employees in Ontario, Canada — purchased 50% interest in the pipeline via OMERS Infrastructure Management Inc. Following closing, OMERS held 50%, Magellan held 30%, and Plains All American Pipeline held 20%.

Background

The BridgeTex pipeline transports Permian Basin crude oil from Colorado City, Texas to the Houston gulf coast area.[7]

In April 2017, Plains All American Pipeline and Magellan Midstream Partners filed an amended breach of contract lawsuit that seeks $311.8 million in damages from Stampede Energy, alleging the company failed to meet its minimum volume requirements on the BridgeTex pipeline beginning in March 2015.[8]

In August 2018, the pension fund Ontario Municipal Employees Retirement System (OMERS) acquired a 50% stake in the BridgeTex Pipeline Company for US$1.438 billion. The agreement left Plains All American with a 20% stake in the project and Magellan Midstream Partners with a 30% stake.[4]

Spills

In September 2017, Magellan Midstream reported the largest Hurricane-Harvey-caused spill near Houston at a gasoline tank.[9] Initially estimating a spill of 1,000 barrels, Magellan Midstream later confirmed the spill was significantly larger, nearly 11,000 barrels.[9] Flooding from Hurricane Harvey inundated the Galena Park terminal east of Houston, causing the spill.[9] Federal and state regulators failed to publicly acknowledge the extent of the spill for nearly two weeks.[10]

Expansion projects

Expansion Project 1

  • Operator:
  • Owner: BridgeTex Pipeline Company LLC[3]
  • Parent company: OMERS (50%), Magellan Midstream Partners (30%), Plains GP Holdings (20%) (via Plains All American Pipeline)[4]
  • Capacity: 100,000 barrels per day[7]
  • Length: 0 new miles of pipeline[5]
  • Status: Operating[5]
  • Start Year: 2017[5]


According to June 2020 data from the U.S. Energy Information Administration (EIA), the expansion project began operations in quarter four of 2017. It did not include adding any new miles of pipeline and resulted in a capacity increased from 300,000 barrels per day to 400,000 barrels per day.[5]

Expansion Project 2

  • Operator:
  • Owner: BridgeTex Pipeline Company LLC[3]
  • Parent company: OMERS (50%), Magellan Midstream Partners (30%), Plains GP Holdings (20%) (via Plains All American Pipeline)[4]
  • Capacity: 40,000 barrels per day[7]
  • Length: 0 new miles of pipeline[5]
  • Status: Operating[5]
  • Start Year: 2018[5]


In July 2017, Magellan Midstream and Plains All American Pipeline announced that they were considering expanding the pipeline capacity further to a total of 440,000 barrels per day.[8]

According to June 2020 data from the U.S. Energy Information Administration (EIA), the expansion project began operations in quarter four of 2018. It did not include adding any new miles of pipeline.[5]

Articles and resources

References

  1. 1.0 1.1 1.2 U.S. Securities and Exchange Commission 10-K, Midstream Energy Partners, accessed September 2017
  2. Keith Kohl, Investing in the Pipeline Boom, Energy and Capital, March 20, 2015
  3. 3.0 3.1 3.2 3.3 "Occidental Petroleum Announces Sale of Interest in BridgeTex Pipeline Generating Proceeds of $1.15 Billion". www.businesswire.com. 2014-11-06. Retrieved 2022-02-28.
  4. 4.0 4.1 4.2 4.3 "Plains All American, Magellan Midstream and OMERS Infrastructure Announce Joint Ownership of BridgeTex Pipeline Company, LLC", BusinessWire, Aug. 21, 2018
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Petroleum & Other Liquids, Movements, Energy Information Administration, June 4, 2020
  6. "A Bridge Too Near? Why The BridgeTex Pipeline Doesn’t Solve Permian Crude Discounts", RBN Energy, Oct. 12, 2014
  7. 7.0 7.1 7.2 BridgeTex Pipeline adding 100,000 b/d of Permian crude capacity, Oil and Gas Journal, 26 Jan. 2017
  8. 8.0 8.1 Magellan, Plains consider BridgeTex crude pipeline expansion; launch open season, Platts, 7 Jul. 2017
  9. 9.0 9.1 9.2 Magellan gasoline leak is biggest known spill of Harvey aftermath, Houston Chronicle, 11 Sep. 2017
  10. Galena Park gasoline spill dwarfed other Harvey leaks, but stayed out of public eye for days, Houston Chronicle, 12 Sep. 2017

Related GEM.wiki articles

External resources

External articles