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.
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SOURCE Magellan Midstream Partners, L.P.
