TULSA, Okla., May 21, 2018 /PRNewswire/ -- Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today that following
a successful open season, it plans to expand the western leg of its
refined petroleum products pipeline system in Texas to 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.
Fully supported by long-term customer commitments, Magellan is
expanding the capacity of the western leg of its Texas refined products pipeline system to
approximately 150,000 barrels per day (bpd) from its current
capacity of 100,000 bpd. The expanded capacity will be accomplished
by increasing the pipeline size along the partnership's existing
route. Connectivity to the ExxonMobil Pipeline
Company's terminal in Wink,
Texas will also be added as part of the expansion.
"Magellan's extensive refined products pipeline system provides
significant optionality for our customers, including the ability to
access supply from multiple Gulf Coast and Mid-Continent
refineries," said Michael Mears,
chief executive officer. "We are pleased to expand the western leg
of our Texas pipeline to serve
increasing demand for refined petroleum products in West Texas and New
Mexico, as well as surrounding markets in Arizona and Mexico via third-party pipeline
connections."
Magellan currently expects to spend approximately $300 million on this project, with the expanded
capacity available mid-2020, subject to receipt of all necessary
permits and approvals.
The pipeline system's capacity could be expanded by another
20,000 bpd, up to 170,000 bpd. Given the strong interest expressed
during the initial open season, the partnership plans to conduct a
supplemental open season for additional commitments in the near
future for a possible further expansion. In addition, construction
of a new refined products terminal in Midland remains under consideration.
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
|
View original
content:http://www.prnewswire.com/news-releases/magellan-midstream-to-expand-western-leg-of-texas-refined-petroleum-products-pipeline-system-300651307.html
SOURCE Magellan Midstream Partners, L.P.