TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today that it is proceeding with
its pipeline project to deliver refined petroleum products to Little Rock,
Arkansas, supported by commitments from its recent open season.
As previously
announced, Magellan plans to transport up to 75,000 barrels per day of
gasoline, diesel fuel and jet fuel to Little Rock from the partnership’s Ft.
Smith, Arkansas terminal, providing the Little Rock market access to refined
products from Mid-Continent and Gulf Coast refineries via Magellan’s extensive
refined petroleum products pipeline system.
Magellan has entered
into an agreement with Ozark Gas Transmission, L.L.C., a subsidiary of Spectra
Energy Partners, L.P., to utilize an existing 160-mile pipeline on a long-term
basis for a portion of the route. In addition, Magellan will extend this
existing pipeline to Magellan’s Ft. Smith terminal and to the Little Rock
market with approximately 50 miles of newly-constructed 12-inch pipe and make
enhancements to its pipeline system to accommodate additional volumes.
“Magellan is pleased to
move forward with this project that will deliver refined petroleum products to
the Little Rock market from a variety of sources, including pipeline access
from Mid-Continent and Gulf Coast refineries, providing additional supply
options to the Little Rock area,” said Michael Mears, chief executive officer.
Magellan expects to
spend approximately $150 million for construction costs, with the Little Rock
pipeline operational in early 2016 subject to regulatory and other approvals.
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, actual outcomes may be materially different.
Among the key risk factors associated with the project that may have a direct
impact on the partnership’s results of operations and financial condition are:
(1) the ability to obtain all required permits and regulatory approvals on
time; (2) approval of the long-term pipeline use agreement by the board of
directors of Spectra Energy Partners, L.P. (3) the ability to complete
construction of the project on time and at expected costs; (4) price
fluctuations and overall demand for refined petroleum products; (5) changes in
tariff rates or other terms imposed by state or federal regulatory agencies; (6)
the occurrence of operational hazards or unforeseen interruptions; (7)
disruption in the debt and equity markets that negatively impact the
partnership’s ability to finance 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 Magellan Midstream
Partners, L.P.’s performance is contained in the partnership’s filings with the
Securities and Exchange Commission. Magellan Midstream Partners, L.P.
undertakes no obligation to revise these forward-looking statements to reflect
events or circumstances occurring after today’s date.
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