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[STK] NYSE:MMP
[IN] UTI OIL GAS
[SU] JVN
-- WITH PHOTO -- TO BUSINESS, AND ENERGY EDITORS:
Magellan Midstream to Construct Fee-Based Condensate Splitter, Fully
Supported by Trafigura AG
TULSA, Okla., March 31, 2014 /PRNewswire/ -- Magellan Midstream
Partners, L.P. (NYSE: MMP) announced today that it plans to construct
a condensate splitter at its terminal in Corpus Christi, Texas under a
fee-based, take-or-pay agreement with Trafigura AG. The project also
includes construction of more than one million barrels of storage,
dock improvements and two additional truck rack bays at Magellan's
terminal as well as pipeline connectivity between Magellan's terminal
and Trafigura AG's nearby facility.
The splitter will be capable of processing 50,000 barrels per day
(bpd) of condensate, fully supported by a long-term commitment from
Trafigura AG. If warranted by additional demand, Magellan could
construct an additional 50,000 bpd splitter at this facility.
"This condensate splitter is a strategic expansion of Magellan's
service offerings, and we are pleased to work with Trafigura AG to
provide an industry solution for increased domestic condensate
production while delivering an attractive fee-based return for our
investors," said Michael Mears, Magellan's president and chief
executive officer. "Our Corpus Christi terminal is ideally situated to
receive condensate from the Eagle Ford shale, including shipments via
our Double Eagle pipeline joint venture, and to offer flexible
services and a variety of market options for our customer."
"This agreement will provide another outlet for producers of domestic
crude and condensate. We believe Corpus Christi is advantaged over
other locations and these investments, along with our other assets in
the area, are critical to providing long-term solutions for the
producers," said Jeff Kopp, Trafigura AG's director of North America
oil trading.
Magellan expects the condensate splitter and related infrastructure to
cost approximately $250 million and to be operational during the
second half of 2016, subject to receipt of necessary permits and
authorizations.
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.
About Trafigura AG Trafigura AG is a wholly owned subsidiary of
Trafigura Beheer BV ("Trafigura"). Trafigura is one of the world's
leading international commodity traders, specializing in the oil,
minerals and metals markets, with operations in 58 countries.
Trafigura's primary trading businesses are the supply and transport of
crude oil, petroleum products, renewable energies, coal, refined
metals, ferrous and non-ferrous ores and concentrates. It is the
world's second largest privately owned non-ferrous and oil trading
company. Founded in 1993, the company is owned by its founding
shareholders and senior management. More information is available at
www.trafigura.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 may 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 permits and regulatory approvals on time; (2) the ability to
complete construction of the project on time and at expected costs;
(3) price fluctuations and overall demand for condensate; (4) changes
in terms imposed by state or federal regulatory agencies; (5) the
occurrence of operational hazards or unforeseen interruptions; (6)
disruption in the debt and equity markets that negatively impact the
partnership's ability to finance capital spending and (7) failure of
customers or vendors to meet or continue contractual obligations.
Additional information about issues that could lead to material
changes in Magellan Midstream Partners, L.P.'s performance is
contained in the partnership's filings with the Securities and
Exchange Commission. Magellan Midstream Partners, L.P. undertakes no
obligation to revise these forward-looking statements to reflect
events or circumstances occurring after today's date.
Contact: Investors: Media:
Paula Farrell Bruce Heine
(918) 574-7650 (918) 574-7010
paula.farrell@magellanlp.com bruce.heine@magellanlp.com
SOURCE Magellan Midstream Partners, L.P.
-0- 03/31/2014
/Photo: http://photos.prnewswire.com/prnh/20031107/DAMAGELOGO
/Web Site: http://www.magellanlp.com
(NYSE:MMP) /
CO: Magellan Midstream Partners, L.P.
ST: Oklahoma Texas
IN: UTI OIL GAS
SU: JVN
PRN
-- DA93541 --
0000 03/31/2014 13:15:00 EDT http://www.prnewswire.com
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