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05-05-2014

Magellan Midstream to deliver refined petroleum products to Little Rock

Magellan Midstream Partners, L.P. announced today that it is proceeding with its pipeline project to deliver refined petroleum products to Little Rock, Arkansas, supported by commitments from its recent open season.

As previously announced, Magellan plans to transport up to 75,000 barrels per day of gasoline, diesel fuel and jet fuel to Little Rock from the partnership’s Ft. Smith, Arkansas terminal, providing the Little Rock market access to refined products from Mid-Continent and Gulf Coast refineries via Magellan’s extensive refined petroleum products pipeline system.  

Magellan has entered into an agreement with Ozark Gas Transmission, L.L.C., a subsidiary of Spectra Energy Partners, L.P., to utilize an existing 160-mile pipeline on a long-term basis for a portion of the route. In addition, Magellan will extend this existing pipeline to Magellan’s Ft. Smith terminal and to the Little Rock market with approximately 50 miles of newly-constructed 12-inch pipe and make enhancements to its pipeline system to accommodate additional volumes.

“Magellan is pleased to move forward with this project that will deliver refined petroleum products to the Little Rock market from a variety of sources, including pipeline access from Mid-Continent and Gulf Coast refineries, providing additional supply options to the Little Rock area,” said Michael Mears, chief executive officer.

Magellan expects to spend approximately $150 million for construction costs, with the Little Rock pipeline operational in early 2016 subject to regulatory and other approvals.

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