TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today that it has launched an
open season to assess customer interest to transport various grades of crude
oil from the Niobrara shale to the partnership’s storage facilities in Cushing,
Oklahoma. Magellan is in discussions with two major producers who have expressed
interest in committing to the project, and Magellan intends to proceed with the
project if commitments are received at currently negotiated levels from these
producers. All potential customers will have an equal opportunity to obtain
capacity in the open season and must submit binding commitments by 5:00 p.m.
Central Time on Oct. 23, 2014.
The proposed Saddlehorn
Pipeline includes construction of an approximate 600-mile, 20-inch diameter
pipeline capable of transporting up to 400,000 barrels per day of crude oil
from Platteville, Colorado to Magellan’s storage facilities in Cushing.
Magellan expects to use its existing right-of-way for a significant portion of
the pipeline route.
Subject to sufficient
commitments from shippers and receipt of any necessary permits and regulatory
approvals, the Saddlehorn Pipeline could be operational during the second
quarter of 2016.
For customer inquiries about
the open season, please contact Christina Payne at (918) 574-7881 or christina.payne@magellanlp.com or Chris
Nalley at (918) 574-7710 or chris.nalley@magellanlp.com. More
information about the open season is available at www.magellanlp.com/tariffs.aspx.
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.
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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
opportunity described in this news release are: (1) the ability to negotiate
and sign definitive agreements with potential customers; (2) the ability to
obtain required rights-of-way, permits and other governmental approvals on a
timely basis; (3) the ability to justify the economics of this potential
opportunity once the necessary engineering and commercial assessments are
complete; (4) price fluctuations and overall demand for crude oil; (5) changes
in the partnership’s tariff rates or other terms imposed by state or federal
regulatory agencies; (6) the occurrence of an operational hazard or unforeseen
interruption; (7) disruption in the debt and equity markets that negatively
impacts the partnership’s ability to finance its capital spending and (8)
failure of customers or vendors to meet or continue contractual obligations.
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. The partnership undertakes no obligation to revise these
forward-looking statements to reflect events or circumstances occurring after
today's date.
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