TULSA, Okla., Oct. 28, 2015 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today the expansion of capabilities at its Galena Park, Texas terminal on the Houston Ship Channel. The expansion includes construction of a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft and new pipeline infrastructure to provide movements of refined products, blendstocks and crude oil to the new marine dock at rates up to 20,000 barrels per hour. Magellan is also expanding connectivity between the partnership's Galena Park terminal and its Houston crude oil distribution system. Once complete, customers will have the ability to access marine crude oil storage and dock throughput services at Galena Park from any origin on the Houston crude oil distribution system.
The enhancements are expected to cost approximately $115 million. Subject to receipt of necessary permits and regulatory approval, Magellan expects the connectivity between Galena Park and the Houston distribution system to be operational by the end of 2016 and the new dock to be fully operational by the end of 2018. In addition, Magellan currently has available land to construct approximately 1.5 million barrels of additional refined products or crude oil tankage at Galena Park once the new marine capabilities are operational.
"Magellan is expanding the capabilities of our Galena Park terminal to meet growing industry demand for marine services," said Michael Mears, chief executive officer. "These enhancements continue to solidify our strategic position as a key provider of refined products and crude oil transportation and storage services in the Gulf Coast region."
Magellan's Galena Park terminal is located along the Houston Ship Channel and currently includes approximately 14 million barrels of storage for refined products, blendstocks, heavy oils and crude oil. The facility also offers extensive connectivity to multiple common carrier pipelines, four docks to accommodate both ship and barge traffic and loading / unloading capabilities for trucks and rail cars.
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 95 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 believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Among the key risk factors that may have a direct impact on the statements made in this news release are: (1) the ability to obtain required rights-of-way, permits and other approvals on a timely basis; (2) price fluctuations and overall demand for crude oil and refined products; (3) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (4) the occurrence of an operational hazard or unforeseen interruption; and (5) willingness to incur or failure of customers or vendors to meet or continue contractual obligations. 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. The partnership undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.
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SOURCE Magellan Midstream Partners, L.P.
