Magellan Midstream Partners to Expand Marine Terminal Capabilities

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to invest approximately $80 million in new capital projects to expand its marine terminals business.

“Demand for petroleum products storage and related energy infrastructure continues to grow,” said Don Wellendorf, chief executive officer. “We are pleased to partner with our customers to fulfill their storage, supply and distribution needs while providing an attractive return for our unitholders through these expansion opportunities."

The new growth projects include the following:

  • Construction of 2.4 million barrels of refined petroleum products tankage at the partnership's Galena Park, Texas facility, supported by long-term commitments from existing customers;
  • Expansion of rail car loading capabilities to provide customers at its Galena Park terminal the additional flexibility to transport diesel and gasoline via rail;
  • Construction of 168,000 barrels of storage at the partnership's Marrero, Louisiana marine terminal. This project also is supported by a long-term customer agreement; and
  • Installation of equipment at the partnership's Corpus Christi, Texas facility that will provide ship and barge loading capabilities at a nearby public dock. This new equipment supports air emission regulations and will allow the partnership to provide a new and enhanced service offering at this location.

Based on current projections, all of these growth projects should be fully operational by fall 2007 and are expected to generate a combined operating profit of approximately $8 million on an annual basis, including about $2.5 million of depreciation.

The partnership currently owns seven marine terminal facilities with a combined usable storage capacity of approximately 21 million barrels.

In addition, the partnership owns 45 terminals connected to its 8,500-mile petroleum products pipeline system and 29 inland terminals connected to third-party pipelines primarily in the southeastern United States. The partnership's current overall usable storage capacity is approximately 53 million barrels.


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