TULSA, Okla., Jan. 30, 2015 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today an extension of the open season for commitments on the Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara play in northeast Colorado to Magellan's storage facilities in Cushing, Oklahoma. Binding commitments are now due by 5:00 p.m. Central Time on Feb. 27, 2015.
The Saddlehorn Pipeline includes construction of an approximate 600-mile, 20-inch diameter pipeline capable of transporting up to 400,000 barrels per day of crude oil from Platteville, Colorado to Magellan's storage facilities in Cushing. Subject to sufficient support, Magellan could also add more origin points.
Magellan is currently in the process of obtaining permits and right-of-way and has secured an 80-acre tract of land to serve as the Platteville origin. Subject to receipt of necessary permits and regulatory approvals, the Saddlehorn Pipeline from Platteville to Cushing is expected to be operational during the second quarter of 2016.
As previously announced, Magellan has received binding commitments from a wholly owned subsidiary of Anadarko Petroleum Corporation and Noble Energy, Inc. In addition, Magellan has entered into letters of intent with potential equity owners in Saddlehorn Pipeline and is in advanced discussions with an additional strategic party for possible equity ownership in the project. Magellan expects to serve as construction manager and operator of Saddlehorn Pipeline.
The project scope, cost and ownership structure of the Saddlehorn Pipeline will be finalized after the open season closes and the total committed volumes are known.
For customer inquiries about the open season, please contact Chris Nalley at (918) 574-7710 or [email protected] or Christina Payne at (918) 574-7881 or [email protected]. More information about the open season is available at www.magellanlp.com/tariffs.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. 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 of Magellan Midstream Partners, L.P. 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) the ability to obtain all required rights-of-way, permits and other governmental approvals on a timely basis; (2) the ability to complete construction of the project on time and at expected costs once the necessary engineering and commercial assessments are complete; (3) price fluctuations and overall demand for crude oil; (4) changes in Saddlehorn Pipeline's tariff rates or other 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 partnership's ability to finance capital spending and (7) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to the project. Additional information about issues that could lead to material changes in performance is contained in Magellan's filings with the Securities and Exchange Commission. The partnership undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.
SOURCE Magellan Midstream Partners, L.P.