Magellan Midstream Partners, L.P. (MMP) (“Magellan”) and TransCanada Corporation (TSX, NYSE: TRP) (“TransCanada”) announced today definitive plans to connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal. HoustonLink Pipeline Company, LLC (“HoustonLink”), a new company owned 50/50 by Magellan and TransCanada, will construct, own and operate a nine-mile, 24-inch diameter crude oil pipeline connecting the terminals. The new pipeline will provide TransCanada’s Keystone and Marketlink customers access to Magellan’s Houston and Texas City crude oil distribution system.
The joint project, first announced in April 2015, is estimated to cost approximately US$50 million. In addition, Magellan and TransCanada plan to develop additional infrastructure at their respective Houston-area terminals to accommodate shipments from the new pipeline. Magellan will serve as construction manager and operator for HoustonLink.
The HoustonLink pipeline is expected to be operational during the first half of 2017, subject to the receipt of all necessary rights-of-way, permits and regulatory approvals.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan 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 of Magellan Midstream Partners, L.P. 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 associated with the project that may have a direct impact on Magellan’s results of operations and financial condition are: (1) the ability to obtain all required rights-of-way, permits and regulatory or other approvals on a timely basis; (2) the ability to complete construction of the project on time and at expected costs; (3) price fluctuations and overall demand for crude oil; (4) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (5) the occurrence of an operational hazard or unforeseen interruption; (6) disruption in the debt and equity markets that negatively impacts Magellan’s ability to finance capital spending and (7) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to this project. Additional information about issues that could lead to material changes in performance is contained in Magellan’s filings with the Securities and Exchange Commission. Magellan undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today’s date.
About TransCanada Corporation
With more than 65 years’ experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 68,000 kilometres (42,100 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with 368 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 11,500 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America’s largest liquids delivery systems. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.