Magellan Midstream Partners, L.P. announced the extension of our open season to solicit customer commitments for the potential expansion of our refined petroleum products pipeline system from the Houston area to El Paso, Texas. Significant interest has been expressed from potential shippers, and the extension provides interested customers additional time to finalize commitments. Binding commitments are now due by 5:00 p.m. Central Time on July 15, 2022.
The proposed project includes the expansion of a 265-mile pipeline segment between Odessa and El Paso and the use of existing and underutilized pipeline capacity from the Houston area to Odessa. The project would increase Magellan’s capability to transport refined petroleum products, such as gasoline and diesel fuel, from Gulf Coast refineries to El Paso, with further shipper optionality to access markets in New Mexico through Magellan’s pipeline system, as well as Arizona and Mexico via connections to third-party pipelines.
The capital-efficient expansion would increase the capacity of the Odessa-to-El Paso portion of the pipeline by an estimated 15,000 barrels per day (bpd), to a new total capacity of approximately 85,000 bpd. Subject to the results of this open season and receipt of all necessary permits and approvals, the higher capacity could be available by mid-2023 following the addition of incremental pumping capabilities and construction of operational storage at El Paso.
Magellan Midstream Partners, L.P. is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan 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 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
Except for statements of historical fact, this news release constitutes forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. believes such statements are based on reasonable assumptions, such statements necessarily involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different.