Magellan Midstream Partners to Expand Marine and Inland Terminal Capabilities

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to invest approximately $85 million in new capital projects to expand its marine terminals in Wilmington, Delaware and Marrero, Louisiana and its inland terminal in Chattanooga, Tennessee.

“Magellan continues to develop significant expansion opportunities that will provide future growth in earnings for our company,” said Don Wellendorf, chief executive officer. “Backed by long-term commitments, these projects will serve our customers’ growing needs for critical energy infrastructure.”

Wilmington expansion. Magellan plans to construct approximately 800,000 barrels of storage at its Wilmington, Delaware marine terminal, supported by a long-term customer agreement. The tanks will be used to store gasoline and ethanol, which were not handled at this facility previously. The expansion includes building nine new tanks with related terminal infrastructure, converting two existing tanks from heating oil to gasoline and ethanol service, enhancing an existing truck rack to handle the new products and adding a marine vapor combustor to an existing dock that will allow the partnership to transfer gasoline and blendstock to and from barges and ships. Based on current project plans, the tanks will become operational in phases beginning late 2008, with the final tank placed into service mid-2009.

Marrero expansion. The partnership also plans to construct an additional 500,000 barrels of storage at its Marrero, Louisiana marine terminal, located near New Orleans. The project includes five new storage tanks with related terminal infrastructure and is supported by a long-term customer commitment. Based on current project plans, the tanks will become operational beginning late 2008, with the final tank available for use during late 2009.

Chattanooga expansion. In addition, Magellan intends to expand its Chattanooga, Tennessee inland terminal by constructing 100,000 barrels of storage and adding a third bay to the terminal’s truck rack, with both projects expected to be operational by late 2008.

Including $250 million of expansion projects already underway and these new marine and inland terminal investments, management’s expansion capital spending estimate for 2007 is now approximately $170 million, with an additional $150 million of spending needed in 2008 and $15 million in 2009 to complete these projects. These expansion capital estimates exclude potential acquisitions or spending on more than $500 million of other potential growth projects in earlier stages of development.


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. More information is available at http://www.magellanlp.com.




Portions of this document may 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. 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