TULSA, Okla., July 14, 2016 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today its plans to construct a new high-capacity marine terminal along the Houston Ship Channel in Pasadena, Texas to handle refined petroleum products, including various grades of gasoline and diesel fuel, and renewable fuels. The new terminal will be built on nearly 200 acres of recently-acquired land.
Supported by a long-term customer commitment, Magellan initially plans to build approximately 1 million barrels of refined products and ethanol storage and a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft. Magellan is also constructing a 36-inch pipeline between the partnership's existing Galena Park, Texas terminal and this new Pasadena terminal to enhance connectivity and distribution options for both facilities. In addition, Magellan is connecting its existing 18-inch Texas City-to-Pasadena pipeline to the new facility. Magellan is developing opportunities for additional connections to third-party refineries, pipelines and terminals within the Gulf Coast region.
The project is currently estimated to cost approximately $335 million, including the acquisition of land. Subject to receipt of necessary permits and regulatory approval, Magellan expects its new Pasadena terminal to be operational in early 2019.
"Demand for refined products export capabilities from the Gulf Coast continues to grow, and Magellan is well-positioned to take advantage of these opportunities due to our extensive pipeline and terminals network," said Michael Mears, chief executive officer. "We are pleased to expand our marine storage capabilities to meet the strong industry demand for both domestic and international exports while solidifying our strategic position as a key provider of storage and transportation services in the Gulf Coast region."
If warranted by additional demand, the new Pasadena facility could be expanded to include up to 10 million barrels of storage and up to 5 docks, including the potential for Aframax-sized vessels with a draft up to 45 feet.
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 95 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 believes any such statements are based on reasonable assumptions, actual outcomes could be materially different. Among the key risk factors that may have a direct impact on the statements made in this news release are: (1) the ability to obtain required rights-of-way, permits and other approvals on a timely basis; (2) price fluctuations and overall demand for refined petroleum products; (3) changes in tariff rates or other terms imposed by state or federal regulatory agencies; (4) the occurrence of an operational hazard or unforeseen interruption; and (5) willingness to incur or failure of customers or vendors to meet or continue contractual obligations. 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, including its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015 and subsequent reports on Form 8-K and 10-Q. The partnership undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.