New oil pipeline should give Delek access to Gulf Coast export market

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An energy company based in Brentwood announced that it will partner with three other companies to build a new oil pipeline crossing Texas.

Delek US Holdings will work with Energy Transfer Partners, Magellan Midstream Partners and MPLX to build the pipeline.

The pipeline system will be 30 inches in diameter and 600 miles long. All four companies will use it to transport oil from the Permian Basin in West Texas to the Gulf Coast Region. The companies expect the pipeline to be working by the middle of 2020.

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In a statement, Delek said the pipeline will give the company access to Gulf Coast export markets.

The company says it will also help the company grow its midstream operations. Midstream oil operations include transporting, storing and selling wholesale oil.

The pipeline will deliver oil to an Energy Transfer terminal in Nederland, Texas and a Magellan terminal in East Houston.

Delek already has oil pipelines in Texas, Louisiana and Arkansas, as well as terminals in Texas, Oklahoma, Arkansas and Tennessee. It has a pipeline in West Texas that it built as a joint venture. Delek has refineries in Texas, Louisiana and Arkansas.

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