Tulsa,
OK and Houston, TX – Magellan Midstream Partners, L.P. (NYSE: MMP) (“Magellan”)
and Plains All American Pipeline, L.P. (NYSE: PAA) (“Plains”) announced today that
BridgeTex Pipeline Company, LLC (“BridgeTex”), owned 50/50 by Magellan and
Plains, has launched an open season to assess customer interest in a new origin
in Grimes County, Texas for the BridgeTex pipeline to accept Eaglebine crude
oil and condensate shipments. The proposed new origin, to be located
approximately 100 miles northwest of Houston, is expected to be operational in
mid-2017. All potential customers must submit binding commitments by 5:00 p.m.
Central Time on Feb. 1, 2016.
The BridgeTex pipeline currently
has a capacity of 300,000 barrels per day (“bpd”) to deliver Permian Basin
crude oil from Colorado City, Texas to the Houston Gulf Coast area. If
warranted by customer demand, BridgeTex will expand the capacity of the
pipeline system by approximately 35,000 bpd to provide transportation services
from the new Grimes County origin to the Houston Gulf Coast area.
For customer inquiries or
additional information about the open season, please contact Mark Daggett of
Magellan at (918) 574-7022 or mark.daggett@magellanlp.com.
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. Magellan 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 95 million barrels of
petroleum products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
About
Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly
traded master limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil, natural gas
liquids (“NGL”), natural gas and refined products. Plains owns an extensive
network of pipeline transportation, terminalling, storage and gathering assets
in key crude oil and NGL producing basins and transportation corridors and at
major market hubs in the United States and Canada. On average, Plains handles
over 4.4 million barrels per day of crude oil and NGL in its Transportation
segment. Plains is headquartered in Houston, Texas. More information is
available at www.plainsallamerican.com.
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Portions of this document constitute
forward-looking statements as defined by federal law. Although management of
Magellan Midstream Partners, L.P. and Plains All American Pipeline, L.P. (the
“companies”) believe 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 associated with the project that may have a direct
impact on the companies’ results of operations and financial condition are: (1)
the ability to obtain all required rights-of-way, permits and other
governmental approvals on a timely basis; (2) the ability to complete
construction of the project on time and at expected costs; (3) price fluctuations
and overall demand for crude oil; (4) changes in the BridgeTex pipeline’s
tariff rates or other terms imposed by state or federal regulatory agencies;
(5) the occurrence of an operational hazard or unforeseen interruption; (6)
disruption in the debt and equity markets that negatively impacts the companies’
abilities to finance capital spending and (7) willingness to incur or failure
of customers or vendors to meet or continue contractual obligations related to
the BridgeTex pipeline. Additional information about issues that could lead to
material changes in performance is contained in filings with the Securities and
Exchange Commission for both companies. The companies undertake no obligation
to revise these forward-looking statements to reflect events or circumstances
occurring after today's date.