Magellan partners Trafigura to build condensate splitter in Texas

[HOUSTON] Magellan Midstream Partners LP has linked up with commodity trader Trafigura AG to build a US$250 million facility at its south Texas terminal that will process a very light form of crude oil so it can be sold or exported, Magellan said.

Last year, Magellan said it was on the hunt for a partner to build a condensate splitter at its Corpus Christi marine terminal, particularly after its joint-venture 100,000 barrels per day (bpd) Double Eagle condensate pipeline started up in 2013. Double Eagle, with partner Kinder Morgan Energy Partners, moves Eagle Ford condensate to Magellan's Corpus terminal.

On Monday, Magellan said it had forged a take-or-pay agreement with Trafigura for the 50,000 bpd splitter project, and said the company could build a second 50,000 bpd splitter if demand warrants. Pending permit approvals, the project will start up in the second half of 2016.