Magellan Midstream Proceeds to Next Project Phase for Potential Little Rock
TULSA, Okla., April 3, 2014
TULSA, Okla., April 3, 2014 /PRNewswire/ -- Magellan Midstream Partners, L.P.
(NYSE: MMP) announced today that it received sufficient commitments through
its recent open season to proceed to the next phase for its potential pipeline
to Little Rock, Arkansas. The partnership continues to finalize the scope and
engineering estimates for this potential project, which may include
utilization of an existing third-party pipeline for a portion of the route.
As previously announced, Magellan has proposed to transport up to 75,000
barrels per day of gasoline, diesel fuel and jet fuel to Little Rock from the
partnership's Ft. Smith, Arkansas terminal, providing the Little Rock market
access to refined products from Mid-Continent and Gulf Coast refineries via
Magellan's extensive refined petroleum products pipeline system.
Management is currently negotiating an agreement to utilize a portion of an
existing third-party pipeline, which will be extended to Magellan's Ft. Smith
terminal and the Little Rock market with newly-constructed pipeline. Subject
to finalizing this agreement and receipt of the necessary permits and
regulatory approval for the pipeline construction, the potential Little Rock
pipeline could be operational in late 2015.
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 90 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More information is
available at 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, actual outcomes may 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) the
ability to obtain all required permits and regulatory approvals on time; (2)
the ability to complete an agreement for use of a third-party pipeline and to
complete construction of the project on time and at expected costs; (3) price
fluctuations and overall demand for refined petroleum products; (4) changes in
tariff rates or other terms imposed by state or federal regulatory agencies;
(5) the occurrence of operational hazards or unforeseen interruptions; (6)
disruption in the debt and equity markets that negatively impact the
partnership's ability to finance capital spending and (7) failure of customers
or vendors to meet or continue contractual obligations. Additional information
about issues that could lead to material changes in Magellan Midstream
Partners, L.P.'s performance is contained in the partnership's filings with
the Securities and Exchange Commission. Magellan Midstream Partners, L.P.
undertakes no obligation to revise these forward-looking statements to reflect
events or circumstances occurring after today's date.
Contact: Investors: Media:
Paula Farrell Bruce Heine
(918) 574-7650 (918) 574-7010
SOURCE Magellan Midstream Partners, L.P.
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