Magellan Midstream Partners to Expand Pipeline and Marine Terminal Capabilities

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to invest almost $55 million in new capital projects to expand its petroleum products pipeline system and marine terminal business, supported by long-term commitments from existing customers.

“These two projects should provide good returns to our unitholders and reflect the increasing opportunities available to Magellan to grow our existing asset base,” said Don Wellendorf, chief executive officer. “Customer demand for our services continues to grow, providing additional opportunities to expand our infrastructure."

Pipeline expansion. To improve optionality for its customers and to solidify its base of direct supply from mid-continent refiners, the partnership plans to construct a 40-mile pipeline to connect the National Cooperative Refining Association (NCRA) refinery in McPherson, Kansas directly to the company's existing pipeline system. Currently, Magellan's 8,500-mile petroleum products pipeline system can access more than 40% of the refinery capacity in the continental United States, including direct connections to 10 refineries.

Once operational by late 2006, the pipeline connection will provide added flexibility, allowing customers to directly utilize Magellan's pipeline system to serve their needs in the Midwest and Rocky Mountain markets with refined petroleum products originating from the NCRA refinery.

Marine terminal expansion. Magellan plans to construct an additional 1.2 million barrels of storage at its Galena Park, Texas marine terminal, located on the Houston Ship Channel. The project is in response to increasing demand for petroleum products storage on the Gulf Coast. Based on current project plans, this tankage should be fully operational by the end of 2007.

As part of this expansion and the previously announced 2.4 million barrel construction project at this facility, the partnership will be enhancing its Galena Park terminal infrastructure for dock efficiency, product segregation capabilities and connectivity to support the increased demand.


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