TULSA, Okla. and DALLAS, Jan. 30, 2019 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) and Navigator Energy Services announced today an extension of the open season to solicit commitments from shippers for the potential new Voyager pipeline to transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas. Binding commitments are now due by 12:00 p.m. Central Time on March 29, 2019. Significant interest has been expressed from potential shippers, particularly those reaching Voyager from connecting carriers. The extension provides these potential shippers additional time to finalize their commitments across multiple pipelines.
The proposed Voyager pipeline would include construction of nearly 500 miles of 20- or 24-inch diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. At the origin, the Voyager pipeline would provide shippers optionality to originate deliveries at Cushing from the Magellan-operated Saddlehorn pipeline serving the Rockies and Bakken production regions, Navigator's Glass Mountain pipeline serving the Mid-Continent basin as well as other connections within the strategic Cushing crude oil hub.
At the destination, Magellan's comprehensive Houston crude oil distribution system could further deliver the product to all refineries in the Houston and Texas City area or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.
The potential pipeline system is expected to have an initial capacity of at least 300,000 barrels per day with the ability to expand further if warranted by industry demand. Subject to receipt of sufficient customer commitments and all necessary permits and approvals, the proposed pipeline is planned to be operational in late 2020.
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. Magellan 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.
About Navigator Energy Services Headquartered in Dallas, Navigator Energy Services provides oil and natural gas producers with comprehensive midstream services including crude oil and natural gas gathering, transportation, storage and natural gas compression and processing. Navigator is focused on domestic midstream opportunities in both developing and mature producing areas. More information is available at www.navigatorenergyservices.com.
Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. and Navigator Energy Services believe such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors that may have a direct impact on the opportunity described in this news release are: (1) the ability to negotiate and sign definitive agreements with potential customers; (2) the ability to obtain all required rights-of-way, permits and other governmental approvals on a timely basis; (3) price fluctuations and overall demand for crude oil and condensate; (4) the ability to establish and collect acceptable tariff rates for the Voyager pipeline or other rates or terms imposed by state or federal regulatory agencies; (5) the occurrence of an operational hazard or unforeseen interruption; (6) disruption in the debt and equity markets that negatively impacts the companies' abilities to finance capital spending and (7) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to this potential pipeline. Additional information about issues that could lead to material changes in performance is contained in Magellan's filings with the Securities and Exchange Commission, including Magellan's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 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 companies in this release are based only on information currently known, and the companies undertake no obligation to revise any forward-looking statements to reflect events or circumstances learned of or occurring after today's date.