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Researched by Industrial Info Resources (Sugar Land, Texas)--Magellan Midstream Partners (NYSE:MMP) (Tulsa, Oklahoma) expects to spend about $1.1 billion this year on expansions now underway, and $150 million in 2020, as it nears completion of key projects, the company said Thursday.
Industrial Info is tracking $2.98 billion in Magellan project activity.
Click on the image at right for a graph showing Magellan project activity by industry sector.
The second phase of a Pasadena, Texas, petroleum products and ethanol marine terminal, a joint venture with Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) on the Houston Ship Channel, is nearing completion, with an additional 4 million barrels of storage and supporting dock and pipeline infrastructure expected to be in service by the end of 2019, Magellan said in its second-quarter 2019 earnings release. The $75 million project comprises construction of 34 storage tanks. For more information, see Industrial Info's project report.
The buildout of additional storage and export capabilities at Magellan's Seabrook, Texas, oil terminal is progressing and expected to be operational in early 2020, the company said. The $125 million project involves construction of five new tanks with a total storage capacity of as much as 165,000 barrels. For more information, see Industrial Info's project report.
Magellan said its East Houston-to-Hearne refined products pipeline segment in Texas remains on target to begin operations at the end of August. The $150 million project includes 135 miles of 20-inch-diameter pipeline in two spreads, to transport more than 85,000 barrels per day (BBL/d) of refined products from Houston-area refineries to distribution networks in Hearne. For more information, see Industrial Info's project report.
Looking forward, "Magellan remains focused on identifying additional investment opportunities for future growth, with well in excess of $500 million of potential organic growth projects under consideration, and also continues to evaluate acquisition opportunities, all of which have been excluded from the partnership's spending estimates at this time," the company said.
Potential projects include the proposed Voyager crude oil pipeline, which would comprise construction of nearly 500 miles of 20-inch-diameter pipeline from Cushing, Oklahoma, to a terminal in East Houston, Texas. The pipeline would allow shippers to originate deliveries at Cushing from the Saddlehorn pipeline, which serves the Rockies and Bakken production regions, as well as from other pipeline connections. At the East Houston endpoint, the pipeline would allow Magellan to further deliver crude oil to area refineries or to crude-export facilities.
Voyager would have an initial capacity of 250,000 BBL/d, with the potential to expand. The open season for the pipeline continues through the end of August.
The company may seek a more capital-efficient version of the proposed pipeline with an undisclosed third party, Magellan Chief Executive Officer Michael Mears said during the company's earnings conference call, adding, "We think there is a real potential with this third party to make it work."
Industrial Info is tracking eight projects with a combined worth of more than $1.57 billion that are tied to the pipeline. Click here for the list of projects.
Industry analysts peppered Magellan executives with questions regarding the company's potential capital guidance for 2020, but Mears would not divulge any numbers, adding that 2019 has been a record year for the company in terms of capital expenditures.
Magellan reported second-quarter net income of $253.7 million, up from $214 million in second-quarter 2018. The company benefitted from increased average refined products pipeline tariff rates and a favorable market for its crude oil pipelines, Mears said.
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.
Industrial Info is tracking $2.98 billion in Magellan project activity.
The second phase of a Pasadena, Texas, petroleum products and ethanol marine terminal, a joint venture with Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) on the Houston Ship Channel, is nearing completion, with an additional 4 million barrels of storage and supporting dock and pipeline infrastructure expected to be in service by the end of 2019, Magellan said in its second-quarter 2019 earnings release. The $75 million project comprises construction of 34 storage tanks. For more information, see Industrial Info's project report.
The buildout of additional storage and export capabilities at Magellan's Seabrook, Texas, oil terminal is progressing and expected to be operational in early 2020, the company said. The $125 million project involves construction of five new tanks with a total storage capacity of as much as 165,000 barrels. For more information, see Industrial Info's project report.
Magellan said its East Houston-to-Hearne refined products pipeline segment in Texas remains on target to begin operations at the end of August. The $150 million project includes 135 miles of 20-inch-diameter pipeline in two spreads, to transport more than 85,000 barrels per day (BBL/d) of refined products from Houston-area refineries to distribution networks in Hearne. For more information, see Industrial Info's project report.
Looking forward, "Magellan remains focused on identifying additional investment opportunities for future growth, with well in excess of $500 million of potential organic growth projects under consideration, and also continues to evaluate acquisition opportunities, all of which have been excluded from the partnership's spending estimates at this time," the company said.
Potential projects include the proposed Voyager crude oil pipeline, which would comprise construction of nearly 500 miles of 20-inch-diameter pipeline from Cushing, Oklahoma, to a terminal in East Houston, Texas. The pipeline would allow shippers to originate deliveries at Cushing from the Saddlehorn pipeline, which serves the Rockies and Bakken production regions, as well as from other pipeline connections. At the East Houston endpoint, the pipeline would allow Magellan to further deliver crude oil to area refineries or to crude-export facilities.
Voyager would have an initial capacity of 250,000 BBL/d, with the potential to expand. The open season for the pipeline continues through the end of August.
The company may seek a more capital-efficient version of the proposed pipeline with an undisclosed third party, Magellan Chief Executive Officer Michael Mears said during the company's earnings conference call, adding, "We think there is a real potential with this third party to make it work."
Industrial Info is tracking eight projects with a combined worth of more than $1.57 billion that are tied to the pipeline. Click here for the list of projects.
Industry analysts peppered Magellan executives with questions regarding the company's potential capital guidance for 2020, but Mears would not divulge any numbers, adding that 2019 has been a record year for the company in terms of capital expenditures.
Magellan reported second-quarter net income of $253.7 million, up from $214 million in second-quarter 2018. The company benefitted from increased average refined products pipeline tariff rates and a favorable market for its crude oil pipelines, Mears said.
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.
