Yahoo Finance Magellan (MMP) Extends Open Season for Texas Pipeline Expansion
Magellan Midstream Partners, L.P. MMP recently declared the extension of the partnership’s open season to solicit customer commitments for the prospective expansion of their refined petroleum products pipeline system from the Houston region to El Paso in Texas.
MMP stated that potential shippers have shown substantial interest and that the extension offers concerned customers extra time to finalize commitments. Binding commitments, however, are now due by 5:00 p.m. Central Time on Jul 15, 2022.
The planned development comprises the expansion of a 265-mile pipeline segment between Odessa and El Paso and the use of the prevailing and underutilized pipeline capacity from the Houston area to Odessa. Moreover, the project will increase Magellan Midstream’s competency in transporting refined petroleum products like gasoline and diesel from the Gulf Coast refineries to El Paso, with further shipper optionality to enter markets in New Mexico through Magellan's pipeline system and Arizona and Mexico via the linkage to third-party pipelines.
The expansion, which is considered capital-efficient, will augment the capacity of the Odessa-to-El Paso portion of the pipeline by approximately 15,000 barrels per day (bpd) to a new total capacity of roughly 85,000 bpd. The higher capacity can be achieved by mid-2023 after the addition of incremental pumping capabilities and the construction of operational storage at El Paso, subject to the results of this open season and the receipts of all the required permits and approvals.
Tulsa, OK-based Magellan Midstream Partners, L.P. is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The partnership primarily transports, stores and distributes refined petroleum products and, to a lesser extent, ammonia. Magellan Midstream has the longest refined petroleum pipeline system in the United States with access to almost half of the total domestic refining capacity. MMP conducts its operations in two segments: Refined Products and Crude Oil.
Magellan Midstream currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy sector include Enerplus ERF, Valero Energy VLO and Marathon Petroleum MPC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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