TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to construct
a new origin at Barnhart, Texas to accept crude oil shipments on the
partnership’s Longhorn pipeline. The new origin, which will be located
approximately 75 miles east of the pipeline’s Crane, Texas origin, is expected
to begin receiving crude oil in early 2015 and cost approximately $25 million.
Further, Magellan plans
to expand the capacity of the Longhorn pipeline by 50,000 barrels per day (bpd)
to an increased capacity of 275,000 bpd, all fully committed by long-term
customer agreements. Subject to regulatory approval, the operating capacity of
the Longhorn pipeline is expected to reach 275,000 bpd by mid-2014, with the
expansion estimated to cost approximately $55 million.
“Customer demand
continues to be strong to deliver Permian Basin crude oil to the Gulf Coast
refining region,” said Michael Mears, chief executive officer. “The new Barnhart
origin and increased capacity for the Longhorn pipeline are in direct response
to our customers’ desire to more efficiently supply additional crude oil
barrels to the Gulf Coast through our Longhorn pipeline system.”
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 more than 40% of the nation’s refining capacity, and
can store over 80 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, actual outcomes may be materially different. Among the
key risk factors associated with these projects that may have a direct impact
on the partnership’s results of operations and financial condition are: (1) the
ability to obtain all required permits and regulatory approvals on time; (2)
the ability to complete construction of the projects on time and at expected
costs; (3) price fluctuations and overall demand for crude oil; (4) changes in
the partnership’s tariff rates or other requirements that may be imposed by governmental
or similar entities; (5) the occurrence of operational hazards or other unforeseen
interruptions; (6) disruption in the debt and equity markets that negatively
impacts the partnership’s ability to finance capital spending and (7) failure
of customers to meet or continue contractual obligations to the company. Please
see Magellan’s filings with the Securities and Exchange Commission for
additional information about issues that could lead to material changes in
performance. Magellan undertakes no obligation to revise these forward-looking
statements to reflect events or circumstances occurring after today's date.
Contacts: