TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to construct
a condensate splitter at its terminal in Corpus Christi, Texas under a
fee-based, take-or-pay agreement with Trafigura AG. The project also includes construction
of more than one million barrels of storage, dock improvements and two additional
truck rack bays at Magellan’s terminal as well as pipeline connectivity between
Magellan’s terminal and Trafigura AG’s nearby facility.
The splitter will be
capable of processing 50,000 barrels per day (bpd) of condensate, fully
supported by a long-term commitment from Trafigura AG. If warranted by
additional demand, Magellan could construct an additional 50,000 bpd splitter at
this facility.
“This condensate
splitter is a strategic expansion of Magellan’s service offerings, and we are
pleased to work with Trafigura AG to provide an industry solution for
increased domestic condensate production while delivering an attractive
fee-based return for our investors,” said Michael Mears, Magellan’s president
and chief executive officer. “Our Corpus Christi terminal is ideally situated
to receive condensate from the Eagle Ford shale, including shipments via our
Double Eagle pipeline joint venture, and to offer flexible services and a
variety of market options for our customer.”
“This agreement will
provide another outlet for producers of domestic crude and condensate. We
believe Corpus Christi is advantaged over other locations and these
investments, along with our other assets in the area, are critical to providing
long-term solutions for the producers,” said Jeff Kopp, Trafigura AG’s director
of North America oil trading.
Magellan expects the condensate
splitter and related infrastructure to cost approximately $250 million and to be
operational during the second half of 2016, subject to receipt of necessary
permits and authorizations.
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 90 million barrels of petroleum products such as gasoline,
diesel fuel and crude oil. More information is available at www.magellanlp.com.
About
Trafigura AG
Trafigura
AG is a wholly owned subsidiary of Trafigura Beheer BV (“Trafigura”). Trafigura
is one of the world’s leading international commodity traders, specializing in
the oil, minerals and metals markets, with operations in 58 countries.
Trafigura’s primary trading businesses are the supply and transport of crude
oil, petroleum products, renewable energies, coal, refined metals, ferrous and
non-ferrous ores and concentrates. It is the world’s second largest privately
owned non-ferrous and oil trading company. Founded in 1993, the company is
owned by its founding shareholders and senior management. More information is
available at www.trafigura.com.
###
Portions of this document constitute forward-looking statements as
defined by federal law. Although management believes any such statements are
based on reasonable assumptions, actual outcomes may be materially different.
Among the key risk factors associated with the project 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 project on time and at
expected costs; (3) price fluctuations and overall demand for condensate; (4)
changes in terms imposed by state or federal regulatory agencies; (5) the
occurrence of operational hazards or unforeseen interruptions; (6) disruption
in the debt and equity markets that negatively impact the partnership’s ability
to finance capital spending and (7) failure of customers or vendors to meet or
continue contractual obligations. Additional information about issues that
could lead to material changes in Magellan Midstream Partners, L.P.’s
performance is contained in the partnership’s filings with the Securities and Exchange
Commission. Magellan Midstream Partners, L.P. undertakes no obligation to
revise these forward-looking statements to reflect events or circumstances
occurring after today’s date.
Contacts: