Market Overview

Magellan Midstream to Further Expand Western Leg of Texas Refined Petroleum Products Pipeline System

Share:

Magellan Midstream to Further Expand Western Leg of Texas Refined Petroleum Products Pipeline System

PR Newswire

TULSA, Okla., July 30, 2018 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE:MMP) announced today an additional expansion of the western leg of its refined petroleum products pipeline system in Texas. Magellan had previously announced its plans to expand the capacity of this line segment to approximately 150,000 barrels per day (bpd) from its current capacity of 100,000 bpd. Based on additional committed volume received as part of its recent supplemental open season, the partnership now plans to expand this pipe capacity to 175,000 bpd.

The expanded capacity will handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas and New Mexico. The pipeline system can also access markets in Arizona and Mexico via connections to other pipelines.

Supported by long-term customer commitments, the expansion will be accomplished by a combination of increased pipeline diameter along the partnership's existing route and construction of 140 miles of new pipe from Hearne to Alexander, Texas. Connectivity to the ExxonMobil Pipeline Company's terminal in Wink, Texas will also be added as part of the expansion.

"Magellan's expansion of our refined products pipeline system into West Texas provides our customers with continued flexibility to meet growing demand for gasoline and diesel fuel in the region with supply from our Gulf Coast and Mid-Continent origins," said Michael Mears, chief executive officer. "Further, construction of the new pipeline segment between Hearne and Alexander has the strategic advantage of providing additional capacity along our extensive pipeline network to satisfy strong demand for refined products destined for the Dallas-Fort Worth metropolitan area."

Magellan now expects to spend approximately $500 million on this project, with the expanded capacity available mid-2020, subject to receipt of all permits and approvals.

Construction of new refined products terminals in both Midland and the Delaware Basin remain under review.

About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE:MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.

Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. believes such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors that may have a direct impact on the opportunity described in this news release are: (1) the ability to obtain all required rights-of-way, permits and other governmental approvals on a timely basis; (2) price fluctuations and overall demand for refined petroleum products; (3) changes in the partnership's tariff rates or other terms as required by state or federal regulatory authorities; (4) the occurrence of an operational hazard or unforeseen interruption; (5) disruption in the debt and equity markets that negatively impacts the partnership's ability to finance its capital spending and (6) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to this expansion. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission, including the partnership's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and subsequent reports on Forms 8-K and 10-Q. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, especially under the heading "Risk Factors." Forward-looking statements made by the partnership in this release are based only on information currently known, and the partnership undertakes no obligation to revise its forward-looking statements to reflect events or circumstances learned of or occurring after today's date.

Contact:                

Investors:                                    

Media:


Paula Farrell                               

Bruce Heine


(918) 574-7650                           

(918) 574-7010


paula.farrell@magellanlp.com     

bruce.heine@magellanlp.com  

 

Cision View original content:http://www.prnewswire.com/news-releases/magellan-midstream-to-further-expand-western-leg-of-texas-refined-petroleum-products-pipeline-system-300688042.html

SOURCE Magellan Midstream Partners, L.P.

View Comments and Join the Discussion!