TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to invest approximately $65 million to expand its refined petroleum products assets in Texas. These plans include increasing its pipeline capabilities in the Texas market and expanding its Dallas area terminals.

“Magellan continues to see many growth opportunities in the Texas market,” said Don Wellendorf, chief executive officer. “Demand for our services remains strong, and these infrastructure enhancements will allow us to continue to serve our customers’ expanding needs for petroleum transportation and storage services."

Pipeline expansion. The partnership intends to loop its existing 12-inch diameter pipeline between its Galena Park origins and its East Houston terminal with a new 16-inch diameter line. The East Houston terminal serves as an origination point for the partnership’s 8,500-mile petroleum products pipeline system. The partnership also intends to construct 250,000 barrels of storage at its East Houston terminal and add a new pump station north of the Houston area. These projects will increase the partnership’s capabilities to handle petroleum products originating from the Houston area for delivery throughout the Texas market, adding 200,000 barrels per day of incremental pipeline capabilities to the East Houston terminal and 65,000 barrels per day of incremental pipeline capabilities to Dallas and other Texas markets. The new additions, which are currently expected to be operational in the latter half of 2008, also will provide flexibility for the partnership to increase its pipeline capacity further in the future.

Terminal expansions. The partnership is expanding the storage and loading capabilities at its terminals in the Dallas area to better serve the growing Dallas / Fort Worth market. This enhancement includes construction of 80,000 barrels of storage and expansion of the existing truck rack at its Dallas terminal to accommodate increased throughput of at least 10,000 barrels per day. In addition, the partnership plans to increase pipeline capacity and construct 100,000 barrels of storage at its Aledo terminal and build a new truck rack at its Frost facility, further enhancing its services to the Dallas / Fort Worth region. Based on current project plans, the terminal expansions should provide phased-in incremental capacity and be fully operational in second quarter 2008.

About Magellan Midstream Partners, L.P.  

Magellan Midstream Partners, L.P. is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products. More information is available at http://www.magellanlp.com.

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Portions of this document may 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. Additional information about issues that could lead to material changes in performance is contained in filings with the Securities and Exchange Commission for both partnerships.