Published: September 17, 2025 |

[Click image to enlarge]

Oneok said its Magellan Pipeline unit is gauging customer interest in a refined product pipeline from El Paso, Texas, to Phoenix, Arizona that would allow shippers to move fuel from refineries in Texas and Oklahoma to Arizona markets.

The company, in an open season notice, said last week the proposed 440-mile project would carry gasoline, diesel and jet fuel from the Magellan East Houston terminal and Southern Oklahoma origins to the Sun Belt Connector terminal in Phoenix and the Phoenix Sky Harbor International Airport.

In addition, Magellan said it is offering reserved capacity optionally from Houston and southern Oklahoma to its El Paso terminal and its Sun Belt Connector El Paso terminal to Phoenix.

Oneok also said it is assessing commercial interest in shorter movements on its product pipelines between Houston and Arizona.

The additional pipeline capacity could be available by mid to late 2029, depending on customer interest, a final investment decision and the receipt of all necessary permits and approvals, the Tulsa, Okla.-based company said.

Pipeline operators hold open seasons to alert shippers to available line capacity and allow shippers to bid for that capacity.

The open season started Tuesday, September 9 at 9 a.m. CDT and will run until 4 p.m. on Nov. 7, when all binding commitments must be received.

RBN Energy, a downstream consultant, said in a note that the primary drivers for the Sun Belt Connector project included strong product demand in Arizona, declining California refinery output and refiner interest in conveying Gulf Coast and Midwest production to premium markets.

ONEOK operates a 60,000-mile pipeline network that transports natural gas, NGLs, refined products and crude oil. The midstream operator also offers gathering, processing fractionation, storage and marine export services.

Source: Market Watch

ONEOK delivers energy products and services vital to an advancing world. They are a leading midstream operator that provides gathering, processing, fractionation, transportation, and storage services. Through their more than 60,000-mile pipeline network, they transport the natural gas, natural gas liquids (NGLs), refined products, and crude that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.

Be in-the-know when you’re on-the-go!