Magellan Midstream to buy 800 miles of pipeline from Plains All American
BY ROD WALTON World Staff Writer
Saturday, February 23, 2013
2/23/13 at 7:14 AM
Read more energy stories that impact Tulsa.
Tulsa-based Magellan Midstream Partners LP announced Friday it is buying 800 miles of refined-petroleum pipelines in the Southwest and Rocky Mountains for $190 million.
Plains All American Pipeline LP is selling two pipeline systems to Magellan.
The Rockies pipeline is a 550-mile common carrier system that moves fuel in Colorado, South Dakota and Wyoming, along with four terminals having nearly 1.7 million barrels in storage capacity.
The second system includes 250 miles of pipeline that moves product from El Paso, Texas, to Albuquerque, N.M. It connects to a third-party line delivering fuel at the U.S.-Mexico border in Texas.
"This acquisition utilizes Magellan's expertise in transporting and storing petroleum products," Magellan CEO Michael Mears said in a statement. "These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve."
Both lines access supplies from several regional refineries and other pipelines, Magellan spokesman Bruce Heine said.
The transaction is expected to close in the second quarter pending regulatory approvals. Magellan said it will fund the acquisition with cash and borrowing under its revolving credit facility.
Magellan owns and operates approximately 10,000 miles of refined-petroleum and crude oil pipelines in the U.S. Its facilities include a large refined-products terminal in west Tulsa.
Houston-based Plains called the assets "non-core." No company executives commented publicly on the transaction.
Earlier this month, Plains announced plans for a 55-mile extension of its Mississippian Lime pipeline through parts of western Oklahoma and southwest Kansas.
Original Print Headline: Magellan acquiring 800 miles of pipeline
Rod Walton 918-581-8457
rod.walton@tulsaworld.com
Associated Images:
|
