Magellan Midstream Partners to Expand Terminals Segment

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to invest approximately $25 million in new capital projects to expand its independent terminals business segment.

“Customer demand for the terminal services we provide continues to grow,” said Don Wellendorf, chief executive officer. “To fulfill this growing demand, many of our facilities require additional tankage and terminal enhancements to handle the increased throughput and storage needs of our customers."

The new growth projects include the following:

  • Expansion of the partnership's Knoxville and Nashville, Tennessee inland terminals with 87,000 and 78,000 barrels of new tankage, respectively, and additional truck loading capabilities;
  • Enhancement of truck loading racks at the partnership's Chattanooga, Tennessee and Doraville, Georgia inland terminals to reduce the loading time by approximately 50 percent;
  • Acquisition of an inland terminal in Birmingham, Alabama from Crown Central Petroleum during Oct. 2004. This facility will be combined with the partnership's existing Birmingham terminal, which is adjacent to the acquired location;
  • Expansion of the New Haven, Connecticut marine facility to include enhancements to the existing dock to accommodate larger vessels, reactivation of another dock and construction of 100,000 barrels of tankage; and
  • Construction of 340,000 and 160,000 barrels of tankage at the partnership's Corpus Christi, Texas and Marrero, Louisiana marine facilities, respectively.

All of these growth projects should be fully operational by fall 2005 and are expected to generate combined operating profit of approximately $3 million on an annual basis.

As previously indicated, the partnership also intends to construct additional tankage at its Dallas, Texas inland terminal to increase capabilities for product transported via Magellan Pipeline South, which was formerly known as the Hearne pipeline system prior to being acquired by the partnership earlier this month.

About Magellan Midstream Partners, L.P.  

Magellan Midstream Partners, L.P. 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.



Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the partnership 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.  

Contact Information:

Paula Farrell Investor Relations 918-574-7650 paula.farrell@magellanlp.com