Magellan Midstream Extends Open Season for Potential Kansas-to-Colorado Refined Products Pipeline Expansion to Dec. 22

Rhea-AI Summary

Magellan Midstream Partners, L.P. (NYSE: MMP) has extended the open season for commitments on a potential expansion of its refined petroleum products pipeline from Kansas to Colorado. The new deadline for binding commitments is 5:00 p.m. Central Time on December 22, 2021. The existing pipeline, which carries gasoline, diesel, and jet fuel, currently operates at approximately 60,000 barrels per day. The proposed expansion aims to boost capacity by 5,000 barrels per day, reaching a total of 65,000 barrels per day by late 2022. This expansion would enhance fuel access for the Colorado market.

Positive

• Pipeline expansion would increase capacity by an estimated 5,000 barrels per day (bpd), reaching a total of approximately 65,000 bpd.
• Significant interest from potential shippers indicates strong market demand for the expanded capacity, enhancing revenue potential.

Negative

• None.

TULSA, Okla., Dec. 15, 2021 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today the extension of its open season to solicit customer commitments for the potential expansion of the partnership's refined petroleum products pipeline system from Kansas to Colorado. Significant interest has been expressed from potential shippers, and the extension provides interested customers additional time to finalize commitments. Binding commitments are now due by 5:00 p.m. Central Time on Dec. 22.

The approximately 450-mile pipeline currently transports various grades of gasoline, diesel fuel and jet fuel from El Dorado, Kansas to Denver, Colorado. Magellan's pipeline network is capable of further distributing these essential fuels safely and efficiently to key markets within Colorado, including Colorado Springs, the greater Denver metropolitan area as well as the Denver International Airport.

Expansion of the pipeline would provide the Colorado market additional access to refined products from Midcontinent and Gulf Coast refineries via Magellan's extensive pipeline system.

The capital-efficient expansion would increase the pipeline's capacity by an estimated 5,000 barrels per day (bpd), to a new total capacity of approximately 65,000 bpd. The higher capacity could be available by late 2022 following the addition of incremental pumping capabilities.

For customer inquiries about the open season, please contact Kelly Taylor at (918) 574-7713 or mountainopenseason@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. 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 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 the partnership's filings with the Securities and Exchange Commission, including the partnership's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020 and subsequent reports on Forms 8-K and 10-Q. 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 the partnership in this release are based only on information currently known, and the partnership undertakes no obligation to revise its 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 Magellan Midstream's recent pipeline expansion announcement?

Magellan Midstream announced an extension for commitments on a potential Kansas to Colorado pipeline expansion, increasing capacity to 65,000 bpd.

When is the deadline for commitments for the pipeline expansion?

The deadline for binding commitments is now set for 5:00 p.m. Central Time on December 22, 2021.

How much will the pipeline capacity increase after the expansion?

The pipeline capacity will increase by an estimated 5,000 barrels per day, totaling approximately 65,000 barrels per day.

What is the current capacity of Magellan Midstream's pipeline?

The current operational capacity is approximately 60,000 barrels per day.

When is the increased pipeline capacity expected to be available?

The higher capacity could be available by late 2022 following the addition of incremental pumping capabilities.