TULSA, Okla., March 16, 2011 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it is proceeding with permitting and final engineering for the potential reversal and conversion of a portion of the partnership's Houston-to-El Paso pipeline to crude oil service. The reversed pipeline system would have a capacity of up to 200,000 barrels per day. Recent expressions of interest received from potential shippers indicate sufficient support exists to justify the project. However, the partnership will make a definitive decision on this project once binding agreements are executed.
"Recent market dynamics continue to favor the reversal and conversion of Magellan's Houston-to-El Paso pipeline to crude oil service as new outlets for West Texas crude oil are sought by producers," said Mike Mears, chief executive officer. "We believe our pipeline system coupled with the crude oil distribution system purchased last year would provide the most direct and cost-efficient route to deliver West Texas crude oil to the refineries on the Houston Ship Channel and Texas City."
Management continues to finalize the scope of this project and to negotiate binding agreements with shippers and expects to make a decision on this project within the next 2 months. If the project is approved and this schedule is maintained, the partnership expects the reversed crude oil pipeline to be operational within 18 to 24 months.
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 85 petroleum terminals with over 70 million barrels of storage. More information is available at http://www.magellanlp.com.
Portions of this document may 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 that may have a direct impact on the decision to proceed with the opportunities described in this news release are: (1) the ability to negotiate and sign definitive agreements with potential customers; (2) the ability to obtain required permits and other governmental approvals on a timely basis and (3) the ability to justify the economics of this potential opportunity once the necessary engineering and commercial assessments are complete. We undertake no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.
SOURCE Magellan Midstream Partners, L.P.