TULSA, Okla., Nov. 1, 2011 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it is further expanding its crude oil pipeline distribution capabilities in the Houston area to deliver domestic crude oil and condensate transported via third-party pipeline systems from the Eagle Ford Shale production area directly to local refineries. The project includes the construction of a 6-mile, 24-inch diameter crude oil pipeline between the pipeline interchanges of Genoa Junction and Speed Junction, which will connect to the 24-inch diameter crude oil pipeline along the Houston Ship Channel that was previously announced as part of the partnership's Houston-to-El Paso pipeline reversal project, allowing Magellan to further distribute product to the Houston-area refineries.
"Magellan's crude oil infrastructure is strategically positioned to be the last leg distribution conduit to the Houston and Texas City refinery gate for growing domestic crude oil and condensate production," said Michael Mears, chief executive officer. "Together with our recently-announced capital investment to transport crude oil from West Texas to the Houston market, Magellan will be able to access and distribute crude oil and condensate from both the Eagle Ford Shale and Permian Basin formations, providing Houston and Texas City refineries with direct access to new domestic production."
This project, which is supported by a long-term customer commitment, is expected to be operational by the end of 2012.
The partnership also is pursuing opportunities to provide outbound waterborne capabilities and connections to third-party pipelines that can transport crude oil and condensate to additional markets.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) 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, such as gasoline and diesel fuel, and crude oil. The partnership's primary assets include: the longest petroleum products pipeline system in the continental United States at 9,600 miles, which can access more than 40% of the country's refining capacity and imports, as well as more than 80 petroleum terminals with over 75 million barrels of storage. More information is available at http://www.magellanlp.com.
Portions of this document constitute forward-looking statements as defined by federal law. Although management believes 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 partnership's results of operations and financial condition are: (1) its ability to obtain all required permits and regulatory approvals on time; (2) its ability to complete construction of the project on time and at expected costs; (3) price fluctuations for refined petroleum products and crude oil; (4) overall demand for refined petroleum products and crude oil in the United States; (5) changes in the partnership's tariff rates implemented by the Federal Energy Regulatory Commission, the United States Surface Transportation Board and state regulatory agencies; (6) shut-downs or cutbacks at major refineries or other businesses that use or supply the partnership's services; (7) the occurrence of an operational hazard or unforeseen interruption for which the partnership is not adequately insured; (8) disruption in the debt and equity markets that negatively impacts the partnership's ability to finance its capital spending and (9) failure of customers to meet or continue contractual obligations to the partnership. 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. The partnership undertakes no obligation to revise its forward-looking statements to reflect events or circumstances occurring after today's date.
SOURCE Magellan Midstream Partners, L.P.