Magellan Midstream Partners L.P. completed acquisition of 7.8 MMbbls of crude oil storage and 100 miles of active petroleum pipelines from BP Pipelines (North America) Inc. for $289 million. The partnership will also acquire crude oil tank working inventory for $50 million.
The partnership plans to build an incremental 2.25 MMbbls of crude oil storage in the crude oil hub of Cushing, OK in conjunction with a private investor group. Combined with the initial 2 MMbbls announced in May, this crude oil construction project totals 4.25 MMbbls of storage, all supported by long-term customer contracts. Magellan will be the majority owner and operator of the storage.
Including acquisitions to date, expansion spending estimates are $565 million during 2010 with an additional $125 million, primarily in 2011, necessary to complete these projects. For more information, see www.magellanlp.com.