TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it has launched an open season to assess firm customer interest to transport crude oil from West Texas to the partnership’s East Houston terminal. Interested customers must submit binding commitments by Sept. 15, 2010.
As previously announced, Magellan is evaluating the reversal and conversion of a portion of its 18-inch Houston-to-El Paso pipeline, formerly known as the Longhorn pipeline, to crude oil service. This pipeline system’s potential crude transportation capacity would be up to 200,000 barrels per day.
Specifically the partnership is considering the reversal of the pipeline segment from Crane, Texas to Houston to transport crude oil from West Texas to its East Houston terminal. Crane is approximately 30 miles south of Odessa, Texas. If the reversal and conversion move forward, the partnership would still be able to transport at least 60,000 barrels per day of refined petroleum products to the El Paso market by enhancing the operational connectivity of its nearby pipeline infrastructure. A diagram of the potential Texas pipeline conversion is available at http://www.magellanlp.com.
In addition, the partnership is evaluating pipeline connections to transport crude oil and condensate from the Eagle Ford Shale formation to its East Houston terminal, which may be included in a future open season.
Although the project scope remains under review, current preliminary estimates for the potential reversal and conversion of this pipeline system, connectivity enhancements for refined products service and associated storage are approximately $150 million.
For customer inquiries regarding the open season, please contact Mark Daggett at (918) 574-7022 or mark.daggett@magellanlp.com. More information about the open season is available at http://www.magellanlp.com/tariffs.asp.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) 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 the partnership’s filings with the Securities and Exchange Commission.
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