Magellan Midstream to Deliver Refined Petroleum Products to Little Rock
TULSA, Okla., May 5, 2014
TULSA, Okla., May 5, 2014 /PRNewswire/ -- Magellan Midstream Partners, L.P.
(NYSE: MMP) announced today that it is proceeding with its pipeline project to
deliver refined petroleum products to Little Rock, Arkansas, supported by
commitments from its recent open season.
As previously announced, Magellan plans 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.
Magellan has entered into an agreement with Ozark Gas Transmission, L.L.C., a
subsidiary of Spectra Energy Partners, L.P., to utilize an existing 160-mile
pipeline on a long-term basis for a portion of the route. In addition,
Magellan will extend this existing pipeline to Magellan's Ft. Smith terminal
and to the Little Rock market with approximately 50 miles of newly-constructed
12-inch pipe and make enhancements to its pipeline system to accommodate
"Magellan is pleased to move forward with this project that will deliver
refined petroleum products to the Little Rock market from a variety of
sources, including pipeline access from Mid-Continent and Gulf Coast
refineries, providing additional supply options to the Little Rock area," said
Michael Mears, chief executive officer.
Magellan expects to spend approximately $150 million for construction costs,
with the Little Rock pipeline operational in early 2016 subject to regulatory
and other approvals.
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)
approval of the long-term pipeline use agreement by the board of directors of
Spectra Energy Partners, L.P. (3) the ability to complete construction of the
project on time and at expected costs; (4) price fluctuations and overall
demand for refined petroleum products; (5) changes in tariff rates or other
terms imposed by state or federal regulatory agencies; (6) the occurrence of
operational hazards or unforeseen interruptions; (7) disruption in the debt
and equity markets that negatively impact the partnership's ability to finance
capital spending and (8) 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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