OK and Los Angeles, CA – Magellan Midstream Partners, L.P. (NYSE: MMP)
(“Magellan”) and Occidental Petroleum Corporation (NYSE: OXY) announced today that
they are proceeding with the construction of the previously announced BridgeTex
Pipeline to transport Permian Basin crude oil from Colorado City, Texas to the
Houston Gulf Coast area.
The BridgeTex Pipeline is
supported by long-term transportation commitments received during its recent
successful open season and has received a favorable order from the Federal
Energy Regulatory Commission approving the tariff structure for the pipeline.
The BridgeTex Pipeline will be capable
of transporting up to 300,000 barrels per day of crude oil, with access to Houston
Ship Channel refineries, Texas City refineries and other refineries throughout
the Gulf Coast via third-party pipelines. The BridgeTex Pipeline project includes
construction of the following energy infrastructure:
- approximately 400 miles of 20-inch pipeline
from Colorado City to Magellan’s terminal in East Houston;
- approximately 1.2 million barrels of crude
oil storage at Colorado City and 1.4 million barrels of crude oil storage at East
Houston to facilitate pipeline movements; and
- nearly 50 miles of 24-inch pipeline between
East Houston and Texas City.
The BridgeTex Pipeline is expected to begin service
by mid-2014, subject to necessary permitting.
A joint project team
will oversee the BridgeTex Pipeline project, with Magellan serving as the
construction manager and operator of the BridgeTex Pipeline.
Magellan Midstream Partners, L.P.
Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily
transports, stores and distributes petroleum products. 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 80 million
barrels of petroleum products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
Occidental Petroleum Corporation
Petroleum Corporation (NYSE: OXY) is an international oil and gas exploration
and production company with operations in the United States, Middle East/North
Africa and Latin America regions. Oxy’s wholly owned subsidiary OxyChem
manufactures and markets chlor-alkali products and vinyls. Oxy is committed to
safeguarding the environment, protecting the safety and health of employees and
neighboring communities and upholding high standards of social responsibility
in all of the company’s worldwide operations. More information is available at www.oxy.com.
Portions of this document constitute
forward-looking statements as defined by federal law. Although management of
Magellan Midstream Partners, L.P. and Occidental Petroleum Corporation believe
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 associated with the project that may have a direct impact on the
companies’ results of operations and financial condition are: (1) their ability
to obtain all required permits and regulatory approvals on time; (2) their
ability to complete construction of the project on time and at expected costs;
(3) price fluctuations and overall demand for crude oil; (4) changes in the BridgeTex
Pipeline’s tariff rates or other terms imposed by state or federal regulatory
agencies; (5) the occurrence of an operational hazard or unforeseen
interruption for which the companies or BridgeTex Pipeline are not adequately
insured; (6) disruption in the debt and equity markets that negatively impacts
the companies’ abilities to finance capital spending and (7) failure of
customers to meet or continue contractual obligations to the companies or to
the BridgeTex Pipeline company. Additional information about issues that could
lead to material changes in performance is contained in the Securities and
Exchange Commission filings for both companies. The companies undertake no
obligation to revise these forward-looking statements to reflect events or
circumstances occurring after today's date.