TULSA, Okla., Dec. 1, 2017 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP)
announced today that it intends to develop a new pipeline and has
launched an open season to assess customer interest to transport various
grades of crude oil and condensate from the Permian and Eagle Ford
Basins to multiple destinations in the Corpus Christi and Houston, Texas
markets, including Magellan's existing crude oil terminals in these
markets. All potential customers must submit binding commitments by 5:00 p.m. Central Time on Feb. 1, 2018.
The proposed project would include construction of an approximately 375-mile, 24-inch diameter pipeline from Crane to a location near Three Rivers, Texas, providing shippers the option to ultimately deliver crude oil and condensate from the Three Rivers area to the Houston area via a new 200-mile pipeline or to the Corpus Christi
area via a new 70-mile pipeline. The potential pipeline system is
expected to have an initial capacity of at least 350,000 barrels per day
(bpd) with the ability to expand up to 600,000 bpd for each
destination, if warranted by industry demand.
Additional pipeline extensions are being considered for Midland and Orla, Texas in the Permian Basin and Gardendale and Helena, Texas in the Eagle Ford Basin. Magellan previously announced the construction of a 60-mile, 24-inch Delaware Basin pipeline to deliver crude oil and condensate from Wink to Crane.
Subject to receipt of all necessary permits and approvals, the proposed pipeline could be operational by the end of 2019.
For customer inquiries about the open season, please contact Brant Easterling at (918) 574-7665 or brant.easterling@magellanlp.com. More information about the open season is available at www.magellanlp.com.
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 approximately 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
negotiate and sign definitive agreements with potential customers; (2)
the ability to obtain all required rights-of-way, permits and other
governmental approvals on a timely basis; (3) price fluctuations and
overall demand for crude oil and condensate; (4) changes in the
partnership's 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 the partnership's ability to finance its capital
spending and (7) willingness to incur or failure of customers or
vendors to meet or continue contractual obligations related to this
potential pipeline. 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, 2016 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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Contact:
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Investors:
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Media:
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Paula Farrell
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Bruce Heine
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(918) 574-7650
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(918) 574-7010
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