UPDATE 2-Magellan Midstream scales back pipeline project
If the revamped projects cost $120M and generate only $9M including $3M in depreciation then MMP is losing money on this project. THat is a 7.5% return on investment. Capital costs are more than that. Hopefully somewhere there are some better numbers.
I'm sure that MMP is engaged in a "just do the basics" action here until the economy improves. Anchoring this project in the beginning was a long term contract with Motiva that has to be honored if MMP wants a long term future with Shell/Saudi Arabia. In a couple of years,hopefully, we'll see the fullscope project reinstated.