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Released May 03, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Like other U.S. midstream companies, Magellan Midstream Partners LP (NYSE:MMP) (Tulsa, Oklahoma) is investing in growth projects in both pipelines and terminals. Industrial Info is tracking active projects valued at more than $3 billion involving Magellan.
In the company's recent earnings conference call, Magellan Chief Executive Officer Michael Mears gave an update on some of the company's growth projects, among them a joint venture terminal project with Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) on the Houston Ship Channel in Pasadena, Texas. Mears said, "With regards to expansion capital, we continue to make excellent progress on our construction projects, with two of our largest projects on target to become operational this year. Last quarter, we discussed that the first phase of our joint venture marine terminal at Pasadena began service during January, with 1 million barrels of storage. Phase II, which represents another 4 million barrels of storage, is progressing as well. The tanks are now built, with construction of the related pipe and dock infrastructure still in progress. We expect the second phase of Pasadena to become operational by the end of 2019."
Construction on the Phase II terminal expansion began earlier this year. The $75 million project includes construction of 34 tanks, in addition to the 11 already present. The terminal will ship ethanol and refined products. For more information, see Industrial Info's project report.
Magellan is at work on refined products pipelines in Texas. Mears said, "Construction is well underway for our new East Houston-to-Hearne pipeline. Based on the current schedule, we expect to begin operations on this pipe in late August." The 135-mile, 20-inch-diamter pipeline will transport 85,000 barrels per day (BBL/d) of refined products from refiners in the Houston area to Hearne, Texas, with access to other Texas, Mid-continent and Arkansas markets. Construction on the project began last summer, with Areal (Alphretta, Georgia) providing engineering and construction services. For more information, see Industrial Info's project report.
Magellan also is developing a refined products pipeline expansion in West Texas. Mears said, "Significant activity is also underway for our West Texas refined products pipeline expansion. Pipe production is nearing completion, and we expect to begin construction activities later this month, with the entire West Texas expansion still on target for mid-2020 operational day." The project entails digging trenches and laying approximately 390 miles of pipe to transport 45,000 BBL/d of refined products between the Odessa area and Frost, Texas. The project has an overall total investment value of $300 million. For more information, see Industrial Info's project report on the pipeline expansion and the Odessa pump station. Mears said the project had received sufficient commitments to prompt the construction of a new refined products terminal in Midland, Texas.
Among Magellan's largest projects is the Voyager crude oil pipeline, which is currently planned to run from Cushing, Oklahoma, to Magellan's terminal in the east Houston area. As planned, the Voyager Pipeline would transport up to 300,000 BBL/d of light crude and condensate.
Mears suggested that there may be room to expand the scope of the $1.6 billion project. He said, "Regarding the proposed Voyager Pipeline project, we recently extended the open season to the end of May. In addition to providing potential customers more time to finalize their interest, a potential Midland [Texas] origin is also now under evaluation for the Voyager project, based on industry feedback that origin flexibility from both Cushing and Midland is desired for ultimate delivery to the Houston Gulf Coast." Industrial Info will remain apprised of any further developments in the project. Construction could begin later this year, for completion in late 2020. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the project.
Magellan reported first-quarter 2019 net income of $207.7 million, compared with $210.9 in first-quarter 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the company's recent earnings conference call, Magellan Chief Executive Officer Michael Mears gave an update on some of the company's growth projects, among them a joint venture terminal project with Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) on the Houston Ship Channel in Pasadena, Texas. Mears said, "With regards to expansion capital, we continue to make excellent progress on our construction projects, with two of our largest projects on target to become operational this year. Last quarter, we discussed that the first phase of our joint venture marine terminal at Pasadena began service during January, with 1 million barrels of storage. Phase II, which represents another 4 million barrels of storage, is progressing as well. The tanks are now built, with construction of the related pipe and dock infrastructure still in progress. We expect the second phase of Pasadena to become operational by the end of 2019."
Construction on the Phase II terminal expansion began earlier this year. The $75 million project includes construction of 34 tanks, in addition to the 11 already present. The terminal will ship ethanol and refined products. For more information, see Industrial Info's project report.
Magellan is at work on refined products pipelines in Texas. Mears said, "Construction is well underway for our new East Houston-to-Hearne pipeline. Based on the current schedule, we expect to begin operations on this pipe in late August." The 135-mile, 20-inch-diamter pipeline will transport 85,000 barrels per day (BBL/d) of refined products from refiners in the Houston area to Hearne, Texas, with access to other Texas, Mid-continent and Arkansas markets. Construction on the project began last summer, with Areal (Alphretta, Georgia) providing engineering and construction services. For more information, see Industrial Info's project report.
Magellan also is developing a refined products pipeline expansion in West Texas. Mears said, "Significant activity is also underway for our West Texas refined products pipeline expansion. Pipe production is nearing completion, and we expect to begin construction activities later this month, with the entire West Texas expansion still on target for mid-2020 operational day." The project entails digging trenches and laying approximately 390 miles of pipe to transport 45,000 BBL/d of refined products between the Odessa area and Frost, Texas. The project has an overall total investment value of $300 million. For more information, see Industrial Info's project report on the pipeline expansion and the Odessa pump station. Mears said the project had received sufficient commitments to prompt the construction of a new refined products terminal in Midland, Texas.
Among Magellan's largest projects is the Voyager crude oil pipeline, which is currently planned to run from Cushing, Oklahoma, to Magellan's terminal in the east Houston area. As planned, the Voyager Pipeline would transport up to 300,000 BBL/d of light crude and condensate.
Mears suggested that there may be room to expand the scope of the $1.6 billion project. He said, "Regarding the proposed Voyager Pipeline project, we recently extended the open season to the end of May. In addition to providing potential customers more time to finalize their interest, a potential Midland [Texas] origin is also now under evaluation for the Voyager project, based on industry feedback that origin flexibility from both Cushing and Midland is desired for ultimate delivery to the Houston Gulf Coast." Industrial Info will remain apprised of any further developments in the project. Construction could begin later this year, for completion in late 2020. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the project.
Magellan reported first-quarter 2019 net income of $207.7 million, compared with $210.9 in first-quarter 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
