Potential project would bring Texas crude oil from the Eagle Ford Shale formation to Corpus Christi
Magellan Midstream Partners, L.P. today announced that it and M3 Midstream LLC (“Momentum”) are developing a new 180 mile pipeline originating in LaSalle and Live Oak County, Texas and terminating in Corpus Christi, Texas. The proposed pipeline system would safely, cost effectively and efficiently deliver crude oil and condensate from the Eagle Ford Shale formation to Magellan’s existing distribution terminal in Corpus Christi.
The pipeline would have the capacity to supply more than 180,000 barrels of crude oil and condensate per day to gulf coast markets in Corpus Christi, Houston and Beaumont, Texas and St. James, Louisiana.
“We are pleased to join forces with Momentum to evaluate developing a new crude oil pipeline to deliver Texas crude from the Eagle Ford Shale region to our Corpus Christi storage and dock facility,” said Mike Mears, Magellan’s president and chief executive officer. “Together, we can provide Texas producers additional marketing flexibility to sell their products in the field or at downstream destination points to a variety of customers, offering a truly independent pipeline and storage choice.”
The project would include an expansion of crude oil and condensate storage at Magellan’s terminal in Corpus Christi. Within the next few months, Magellan could initially offer a high volume truck unloading facility and storage services for its customers who wish to utilize truck delivery at the terminal and barge loading. Other truck unloading facilities would be added as needed to provide supply into the pipeline including one in Live Oak County. In addition, the project includes the potential construction of more than 1 million barrels of new storage at Magellan’s Corpus Christi terminal for crude oil and condensate.
Design of the pipeline is nearing completion and pipeline construction and terminal modifications would take 14 to 18 months to complete. However, Magellan could offer interim storage services and barge loading within 8 to 12 months to handle start up pipeline shipments. The ownership structure of the proposed pipeline is currently under assessment, and Magellan would continue to own all assets at the Corpus Christi terminal. The construction of the pipeline and terminal projects are dependent upon the successful outcome of ongoing commercial negotiations already underway and the approval of Magellan and Momentum management.
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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, such as gasoline and diesel fuel, and crude oil. The partnership’s primary assets include: the longest petroleum products pipeline system in the continental United States at 9,600 miles, which can access more than 40% of the country’s refining capacity and imports, as well as 85 petroleum terminals with over 70 million barrels of storage. More information is available at http://www.magellanlp.com.
About M3 Midstream LLC
M3 Midstream, LLC (Momentum) is an independent energy company formed to build, acquire, own, and operate oil and gas midstream assets in growth areas of the United States. The company provides focused services that include oil and gas gathering, compression, treating, and processing to a growing number of customers in active areas, including the Eagle Ford Shale. More information is available at http://www.m3midstream.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, there is no assurance that actual outcomes will not be materially different. Among the key risk factors that may have a direct impact on the decision to proceed with the opportunities described in this news release are: (1) the ability to negotiate and sign definitive agreements with potential customers and joint venture partners; (2) the ability to obtain required permits and other governmental approvals on a timely basis and (3) the ability to justify the economics of these potential opportunities once the necessary engineering and commercial assessments are complete. We undertake no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.
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