Magellan Midstream Announces Open Season for Potential Expansion of Refined Products Pipeline System to El Paso

Rhea-AI Summary

Magellan Midstream Partners, L.P. (MMP) announced an open season to gauge interest in firm pipeline capacity from Houston to El Paso, Texas. The initiative aims to expand a 265-mile pipeline, increasing capacity by approximately 15,000 barrels per day (bpd) to around 85,000 bpd. Binding commitments are required by June 24, 2022, with potential capacity available by mid-2023. The project's goal is to enhance transportation of refined petroleum products, benefiting access to markets in New Mexico, Arizona, and Mexico.

Positive

• Expansion of pipeline capacity from Odessa to El Paso by approximately 15,000 bpd.
• Increased transportation capability for refined petroleum products from Gulf Coast refineries.
• Potential to access additional markets in New Mexico, Arizona, and Mexico.

Negative

• None.

TULSA, Okla., April 27, 2022 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today the launch of an open season to assess customer interest in firm pipeline capacity on our refined petroleum products pipeline system from the Houston area to El Paso, Texas. Interested customers must submit binding commitments by 5:00 p.m. Central Time on June 24, 2022.

The proposed project includes the expansion of a 265-mile pipeline segment between Odessa and El Paso and the use of existing and underutilized pipeline capacity from the Houston area to Odessa. The project would increase Magellan's capability to transport refined petroleum products, such as gasoline and diesel fuel, from Gulf Coast refineries to El Paso, with further shipper optionality to access markets in New Mexico through Magellan's pipeline system, as well as Arizona and Mexico via connections to third-party pipelines.

The capital-efficient expansion would increase the capacity of the Odessa-to-El Paso portion of the pipeline by an estimated 15,000 barrels per day (bpd), to a new total capacity of approximately 85,000 bpd. Subject to the results of this open season and receipt of all necessary permits and approvals, the higher capacity could be available by mid-2023 following the addition of incremental pumping capabilities and construction of operational storage at El Paso.

For customer inquiries about the open season, please contact Scott Koors at (918) 574-7071 or scott.koors@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 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.

Except for statements of historical fact, this news release constitutes forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. believes such statements are based on reasonable assumptions, such statements necessarily involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different. Factors that could lead to material changes in performance are described in Magellan's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2021 and subsequent reports on Form 8-K. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, especially under the headings "Risk Factors" and "Forward-Looking Statements." Forward-looking statements made by Magellan in this news release are based only on information currently known, and we undertake no obligation to revise our forward-looking statements to reflect future events or circumstances.

Contact:	Investors:	Media:
	Paula Farrell	Bruce Heine
	918) 574-7650	918) 574-7010
	paula.farrell@magellanlp.com	bruce.heine@magellanlp.com

 

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SOURCE Magellan Midstream Partners, L.P.

FAQ

What is the purpose of Magellan Midstream's open season announcement on April 27, 2022?

The announcement aims to assess customer interest in expanded pipeline capacity from Houston to El Paso, Texas.

How much capacity will be added to the Odessa-El Paso pipeline as a result of the project?

The expansion will increase the pipeline's capacity by approximately 15,000 barrels per day, totaling about 85,000 bpd.

When is the deadline for submitting binding commitments for the pipeline capacity?

Binding commitments must be submitted by 5:00 p.m. Central Time on June 24, 2022.

When could the increased pipeline capacity be available for use?

The higher capacity could be available by mid-2023, pending the results of the open season and necessary approvals.