TULSA, Okla. and DALLAS, May 31, 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 proposed Voyager Pipeline to transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston. Binding commitments are now due by 12:00 p.m. Central Daylight Time on Aug. 30, 2019.
The level of shipper interest in the Midland origin, announced in March, combined with shipper requests for additional grades of crude oil and condensate at Cushing, requires further evaluation of the scope of the Voyager Pipeline project. As currently contemplated, the proposed Voyager Pipeline would include construction of 20-inch diameter pipelines from both Magellan's Cushing and Midland terminals to Magellan's terminal in Frost, Texas. From Frost, a 24-inch diameter pipeline would be constructed to Magellan's terminal in East Houston.
At the Cushing origin, the Voyager Pipeline would provide shippers optionality to originate deliveries from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions and from Navigator's Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub. Additional storage and operational capabilities to move other grades of crude oil and condensate to the Gulf Coast are also being evaluated.
The Midland origin would enhance the project's supply flexibility from the prolific Permian Basin. As a result, facility options consistent with shipper demand are being reviewed, which could include the repurposed use of existing Magellan pipeline and rights-of-way, new-build pipeline or a combination of both.
At the destination, Magellan's comprehensive Houston crude oil distribution system could further deliver the multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.
As proposed, the Voyager Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if warranted by industry demand. Subject to receipt of sufficient customer commitments and all necessary permits and approvals, the pipeline is expected to be operational in early 2021.
For customer inquiries or additional information about the Voyager Pipeline open season, please contact Brett Hunter of Magellan at (918) 574-7477 or firstname.lastname@example.org. More information about the open season is available at https://www.magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx.
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 producers with comprehensive midstream services including crude oil gathering, transportation and storage. Navigator is focused on domestic midstream opportunities in both developing and mature producing areas. To learn more about Navigator, please visit 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, 2018 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.
SOURCE Magellan Midstream Partners, L.P.