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Researched by Industrial Info Resources (Sugar Land, Texas)--Following a record year for capital investments, Magellan Midstream Partners LP (NYSE:MMP) (Tulsa, Oklahoma) is now taking a more modest approach to its construction-related spending by building on some of its recently completed growth projects. Some of these, such as the Saddlehorn pipeline from Oklahoma to Colorado, played a major role in the company's 2016 gains. Industrial Info is tracking more than $827 million in active projects involving Magellan, including further developments to projects like Saddlehorn.
Magellan, which spent a record $736 million on growth construction projects during 2016, now expects capital expenditures of $550 million in 2017 and $350 million in 2018 for the completion of projects under construction. These include its role in the $100 million extension to the Saddlehorn Pipeline, which would run roughly 50 miles from Platteville to Carr, in Colorado. The Saddlehorn originally had been planned to run 550 miles from Platteville to Magellan's crude oil terminal in Cushing, Oklahoma. For more information, see Industrial Info's project report.
The Saddlehorn Pipeline, which is owned 40% by Magellan and began operations in September 2016, was one of several non-controlled entities to substantially boost the company's earnings last year. Magellan recently reported that the Carr-to-Platteville segment is nearing completion, with linefill expected to begin in late February.
Additional leased storage contracts at Magellan's refined products terminal in East Houston, Texas, also helped to increase revenue in 2016. The company is at work on $80 million in additions at the East Houston terminal, including six tanks, with capacities ranging from 275,000 to 350,000 barrels, at the facility, which currently has a capacity of more than 2 million barrels. For more information, see Industrial Info's project report.
Other projects under construction and expected to wrap up in the near future include a $15 million pipeline to connect a logistics facility in Seabrook, Texas, to Magellan's crude oil distribution system in Houston. The line will run two miles, at 24 inches in diameter. The initial phase of the Seabrook logistics facility is expected to be operational during the second quarter. For more information, see Industrial Info's project report.
Magellan completed mechanical work on its Corpus Christi condensate splitter last year, only to see its sole customer, an affiliate of Trafigura AG, terminate its contract. Magellan initiated legal action, but yesterday announced it had dismissed its suit after entering into a new fee-based, take-or-pay agreement with Trafigura Trading LLC for the exclusive use of the splitter. For more information, see Industrial Info's project report.
Magellan also is seeking permits for $150 million in additions at its refined products and crude-oil terminal in Corpus Christi. The additions, which are expected to increase the terminal's total capacity from 3 million to 4 million barrels, is currently designed to include more than 17 tanks, two truck rack bays and dock improvements. The facility would be used to handle commodities from the Eagle Ford Shale in South Texas. For more information, see Industrial Info's project report.
Magellan said in a recent press release that it continues to evaluate more than $500 million of potential growth projects and acquisition opportunities, which currently are excluded from spending projections. These include a proposed, $335 million terminal for refined petroleum products and ethanol in Pasadena, Texas, which would feature at least 10 tanks to store petroleum products, gasoline and diesel fuel. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
Magellan, which spent a record $736 million on growth construction projects during 2016, now expects capital expenditures of $550 million in 2017 and $350 million in 2018 for the completion of projects under construction. These include its role in the $100 million extension to the Saddlehorn Pipeline, which would run roughly 50 miles from Platteville to Carr, in Colorado. The Saddlehorn originally had been planned to run 550 miles from Platteville to Magellan's crude oil terminal in Cushing, Oklahoma. For more information, see Industrial Info's project report.
The Saddlehorn Pipeline, which is owned 40% by Magellan and began operations in September 2016, was one of several non-controlled entities to substantially boost the company's earnings last year. Magellan recently reported that the Carr-to-Platteville segment is nearing completion, with linefill expected to begin in late February.
Additional leased storage contracts at Magellan's refined products terminal in East Houston, Texas, also helped to increase revenue in 2016. The company is at work on $80 million in additions at the East Houston terminal, including six tanks, with capacities ranging from 275,000 to 350,000 barrels, at the facility, which currently has a capacity of more than 2 million barrels. For more information, see Industrial Info's project report.
Other projects under construction and expected to wrap up in the near future include a $15 million pipeline to connect a logistics facility in Seabrook, Texas, to Magellan's crude oil distribution system in Houston. The line will run two miles, at 24 inches in diameter. The initial phase of the Seabrook logistics facility is expected to be operational during the second quarter. For more information, see Industrial Info's project report.
Magellan completed mechanical work on its Corpus Christi condensate splitter last year, only to see its sole customer, an affiliate of Trafigura AG, terminate its contract. Magellan initiated legal action, but yesterday announced it had dismissed its suit after entering into a new fee-based, take-or-pay agreement with Trafigura Trading LLC for the exclusive use of the splitter. For more information, see Industrial Info's project report.
Magellan also is seeking permits for $150 million in additions at its refined products and crude-oil terminal in Corpus Christi. The additions, which are expected to increase the terminal's total capacity from 3 million to 4 million barrels, is currently designed to include more than 17 tanks, two truck rack bays and dock improvements. The facility would be used to handle commodities from the Eagle Ford Shale in South Texas. For more information, see Industrial Info's project report.
Magellan said in a recent press release that it continues to evaluate more than $500 million of potential growth projects and acquisition opportunities, which currently are excluded from spending projections. These include a proposed, $335 million terminal for refined petroleum products and ethanol in Pasadena, Texas, which would feature at least 10 tanks to store petroleum products, gasoline and diesel fuel. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
