TULSA, Okla. and HOUSTON, April 14,
2015 /PRNewswire/ -- Magellan Midstream Partners, L.P.
(NYSE: MMP) ("Magellan") and TransCanada Corporation (NYSE: TRP)
("TransCanada") announced today that they have entered into a joint
development agreement to pursue a project to connect TransCanada's
Houston tank terminal to
Magellan's East Houston terminal.
The project would include the construction of a 9-mile, 24-inch
diameter pipeline, in which Magellan and TransCanada would have a
50/50 ownership interest. The project would give TransCanada's
Keystone and Marketlink shippers access to Magellan's Houston and Texas
City crude oil distribution system.
"Magellan is excited about the prospect of further enhancing our
crude oil connectivity in the Houston market," said Michael Mears, Magellan's president and chief
executive officer. "This connection would provide our customers
with additional supply options for the Houston Gulf Coast refining
region, with access to crude oil from the Cushing storage hub."
"TransCanada is committed to developing energy infrastructure
solutions for our customers in Canada and the U.S., and this project would
allow us to directly connect to key refineries in the Houston and Texas
City area," said Russ
Girling, TransCanada's president and chief executive
officer. "This is another great example of a project that would
help to bolster North American energy security and
independence."
The joint project is estimated to cost approximately
$50 million. In addition, Magellan
would expect to develop additional infrastructure at its
East Houston terminal to
accommodate movements from the new pipeline. Magellan would serve
as construction manager and operator of the pipeline. Construction
of TransCanada's Houston tank
terminal is expected to be completed in 2015.
The joint project is subject to the parties' entry into mutually
acceptable agreements and, pending the receipt of any necessary
rights-of-way, permits and regulatory or other approvals, the
pipeline would be expected to be operational by late 2016.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly
traded partnership that primarily transports, stores and
distributes refined petroleum products and crude oil. Magellan owns
the longest refined petroleum products pipeline system in the
country, with access to nearly 50% of the nation's refining
capacity, and can store more than 95 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More
information is available at
www.magellanlp.com.
About TransCanada Corporation
With more than 60 years' experience, TransCanada is a
leader in the responsible development and reliable operation
of North American energy infrastructure including natural gas and
oil pipelines, power generation and gas storage facilities.
TransCanada operates a network of natural gas pipelines that
extends more than 68,000 kilometres (42,100 miles), tapping into
virtually all major gas supply basins in North America. TransCanada is one of the
continent's largest providers of gas storage and related services
with more than 368 billion cubic feet of storage capacity. A
growing independent power producer, TransCanada owns or has
interests in over 10,900 megawatts of power generation in
Canada and the United States. TransCanada is developing
one of North America's largest oil
delivery systems. TransCanada's common shares trade on the
Toronto and New York stock exchanges under the symbol TRP.
For more information visit: www.transcanada.com or check us out on
Twitter @TransCanada or http://blog.transcanada.com.
Portions of this document constitute forward-looking
statements as defined by federal law. Although management of
Magellan Midstream Partners, L.P. and TransCanada Corporation
believe any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Among the key risk factors that may have a direct impact
on the decision to proceed with the opportunity described in this
news release are: (1) the ability to obtain all required
rights-of-way, permits and regulatory or other approvals on a
timely basis; (2) price fluctuations and overall demand for crude
oil; (3) changes in tariff rates or other terms imposed by state or
federal regulatory agencies; (4) the occurrence of an operational
hazard or unforeseen interruption; and (5) willingness to incur or
failure of customers or vendors to meet or continue contractual
obligations. Additional information about issues that could lead to
material changes in performance is contained in filings with the
Securities and Exchange Commission for both companies. The
companies undertake no obligation to revise these forward-looking
statements to reflect events or circumstances occurring after
today's date.
Contacts:
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Magellan:
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Paula Farrell,
Investor Relations (918) 574-7650,
paula.farrell@magellanlp.com
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Bruce Heine, Media
Relations (918) 574-7010, bruce.heine@magellanlp.com
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TransCanada:
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David Moneta / Lee
Evans, Investor Relations (403) 920-7911 or (800)
361-6522
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Mark Cooper / Davis
Sheremata, Media Relations (403) 920-7859 or (800)
608-7859
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/magellan-midstream-and-transcanada-to-pursue-houston-pipeline-connection-300065809.html
SOURCE Magellan Midstream Partners, L.P.; TransCanada
Corporation