Magellan Midstream to Construct Delaware Basin Crude Oil and Condensate Pipeline

TULSA, Okla., Sept. 5, 2017 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today it is commencing construction of a new Delaware Basin pipeline originating in Wink, Texas to handle crude oil and condensate.

Magellan will build an approximately 60-mile, 24-inch pipeline from Wink to Crane, Texas, which serves as an origin to its Longhorn pipeline. The new Wink pipeline will have an initial capacity of 250,000 barrels per day (bpd) with the ability to expand to more than 600,000 bpd if warranted by industry demand. The project also includes construction of a new terminal at Wink which will offer broad inbound and outbound pipeline access to parties that connect to the facility.

Magellan currently expects the project to cost approximately $150 million and to be operational in mid-2019, subject to receipt of any necessary permits and regulatory approvals. 

"Magellan is known in the industry for its independent service provider business model and is ideally situated to meet growing industry demand for a crude oil and condensate pipeline system with access to customers originating from the Delaware Basin," said Michael Mears, chief executive officer.

The new pipeline segment will offer direct service from the Delaware Basin to the Crane origin of Magellan's Longhorn pipeline, which provides crude oil and condensate transportation service to the Houston and Texas City refining complex and marine export facilities. In addition, this pipeline segment will be able to provide service from the Delaware Basin to the new crude oil and condensate line to Corpus Christi, Texas that has been proposed by Magellan as well as others in the industry.

Magellan plans to conduct an open season for commitments on the new pipeline system at a later time; however, construction of the new pipeline does not depend on the results of the open season. In addition, the partnership is assessing additional pipeline and terminal investments in West Texas to strengthen and enhance its overall crude oil service offerings.

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 approximately 100 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 could be materially different. Among the key risk factors that may have a direct impact on the statements made in this news release are: (1) the ability to obtain required rights-of-way, permits and other approvals on a timely basis; (2) price fluctuations and overall demand for crude oil and condensate; (3) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (4) the occurrence of an operational hazard or unforeseen interruption; and (5) willingness to incur or failure of customers or vendors to meet or continue contractual obligations. 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, including its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016 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 heading "Risk Factors." 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 events or circumstances learned of or occurring after today's date.

SOURCE Magellan Midstream Partners, L.P.

Related Links

http://www.magellanlp.com