Successful open season for Magellan Midstream’s pipeline

Magellan Midstream Partners, L.P. has announced that it received sufficient commitments through its recent open season to proceed to the next phase for its potential pipeline to Little Rock, Arkansas. The partnership continues to finalise the scope and engineering estimates for this potential project, which may include utilisation of an existing third party pipeline for a portion of the route.

As previously announced, Magellan has proposed to transport up to 75 000 bbls/d 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.

Management is currently negotiating an agreement to utilise a portion of an existing third party pipeline, which will be extended to Magellan’s Ft. Smith terminal and the Little Rock market with a newly constructed pipeline. Subject to finalising this agreement and receipt of the necessary permits and regulatory approval for the pipeline construction, the potential Little Rock pipeline could be operational in late 2015.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/03042014/successful_open_season_for_magellan_midstreams_little_rock_pipeline_190/