Magellan Midstream Announces Open Season to Transport Crude Oil From West Texas to Houston Area

Friday, Jul 30, 2010

Magellan Midstream Partners, L.P. (NYSE:MMP) announced today that it has launched an open season to assess firm customer interest to transport crude oil from West Texas to the partnership's East Houston terminal. Interested customers must submit binding commitments by Sept. 15, 2010.

As previously announced, Magellan is evaluating the reversal and conversion of a portion of its 18-inch Houston-to-El Paso pipeline, formerly known as the Longhorn pipeline, to crude oil service. This pipeline system's potential crude transportation capacity would be up to 200,000 barrels per day.

Specifically the partnership is considering the reversal of the pipeline segment from Crane, Texas to Houston to transport crude oil from West Texas to its East Houston terminal. Crane is approximately 30 miles south of Odessa, Texas. If the reversal and conversion move forward, the partnership would still be able to transport at least 60,000 barrels per day of refined petroleum products to the El Paso market by enhancing the operational connectivity of its nearby pipeline infrastructure. A diagram of the potential Texas pipeline conversion is available at http://www.magellanlp.com/.

Source: PR Newswire