TULSA, Okla., Jan. 23, 2012 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it has launched two separate binding open seasons to solicit capacity commitments from shippers to transport crude oil from West Texas to the partnership's East Houston terminal for further delivery to the Houston and Texas City-area refineries through Magellan's distribution system.
As previously announced, Magellan is in the process of reversing and converting its pipeline from Crane, Texas to Houston for crude oil service. The initial pipeline capacity will be 135,000 barrels per day (bpd) but can be expanded up to 225,000 bpd if warranted by committed capacity from these open seasons. Subject to receiving the necessary permits and regulatory approvals, the partnership expects the reversed pipeline to be operational by early 2013. The open season for the Crane-to-Houston crude oil pipeline begins today and ends on Feb. 23, 2012.
Further, the partnership is considering the construction of a new pipeline segment or the use of existing third-party infrastructure to access crude oil from Midland, Texas to Crane for delivery to the Houston area and is soliciting binding commitments to assess customer interest. The Midland-to-Houston open season also begins today but ends on March 1, 2012.
For customer inquiries regarding the open seasons, please contact Mark Daggett at (918) 574-7022 or [email protected].
About Magellan Midstream Partners, L.P. Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products, such as gasoline and diesel fuel, and crude oil. The partnership's primary assets include: the longest petroleum products pipeline system in the continental United States at 9,600 miles, which can access more than 40% of the country's refining capacity and imports, as well as more than 80 petroleum terminals with over 75 million barrels of storage. More information is available at http://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, there is no assurance that actual outcomes will not 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) its ability to obtain all required permits and regulatory approvals on time; (2) its ability to complete construction of the project on time and at expected costs; (3) price fluctuations and overall demand for crude oil in the United States; (4) changes in the partnership's tariff rates or other terms imposed by state or federal regulatory agencies; (5) shut-downs or cutbacks at major refineries or other businesses that use or supply the partnership's services; (6) the occurrence of an operational hazard or unforeseen interruption for which the partnership is not adequately insured; (7) disruption in the debt and equity markets that negatively impacts the partnership's ability to finance its capital spending and (8) failure of customers to meet or continue contractual obligations to the partnership. 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. The partnership undertakes no obligation to revise its forward-looking statements to reflect events or circumstances occurring after today's date.