TULSA, Okla. and DALLAS, March 29, 2019 /PRNewswire/ -- Magellan Midstream Partners, L.P. (MMP) and Navigator Energy Services announced today an extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline, to transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas. Binding commitments are now due by 12:00 p.m. Central Daylight Time on May 31, 2019. Significant interest continues to be expressed from potential shippers, particularly those reaching Voyager from connecting carriers in multiple producing regions. The extension provides these shippers additional time to finalize their commitments across multiple pipelines and evaluate a new origin point near Midland, Texas.
The proposed Voyager Pipeline would include construction of nearly 500 miles of 20- or 24-inch diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. At the Cushing origin, the Voyager Pipeline would provide shippers optionality to originate deliveries at Cushing from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions, Navigator's Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub.
At the request of potential shippers, the sponsors are evaluating the addition of a Midland origin to provide further supply flexibility from the prolific Permian Basin. The Midland origin could be accomplished in part through Voyager's use of an existing Magellan pipeline that may be idled in the near future as part of Magellan's announced West Texas refined products pipeline expansion project. Voyager would have the ability to utilize an existing Magellan terminal in Frost to construct assets and connect to the Cushing-to-Houston segment.
At the destination, Magellan's comprehensive Houston crude oil distribution system could further deliver the multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.
As proposed, the Voyager Pipeline is expected to have an initial capacity of at least 300,000 barrels per day with the ability to expand further if warranted by industry demand. Subject to receipt of sufficient customer commitments and all necessary permits and approvals, the pipeline is planned to be operational in late 2020.
For customer inquiries or additional information about the Voyager pipeline open season, please contact Brant Easterling of Magellan at (918) 574-7665 or firstname.lastname@example.org. More information about the open season is available at https://www.magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (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 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About Navigator Energy Services
Headquartered in Dallas, Navigator Energy Services provides oil producers with comprehensive midstream services including crude oil gathering, transportation and storage. Navigator is focused on domestic midstream opportunities in both developing and mature producing areas. To learn more about Navigator, please visit www.navigatorenergyservices.com.
Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. and Navigator Energy Services believe such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors that may have a direct impact on the opportunity described in this news release are: (1) the ability to negotiate and sign definitive agreements with potential customers; (2) the ability to obtain all required rights-of-way, permits and other governmental approvals on a timely basis; (3) price fluctuations and overall demand for crude oil and condensate; (4) the ability to establish and collect acceptable tariff rates for the Voyager pipeline or other rates or terms imposed by state or federal regulatory agencies; (5) the occurrence of an operational hazard or unforeseen interruption; (6) disruption in the debt and equity markets that negatively impacts the companies' abilities to finance capital spending and (7) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to this potential pipeline. Additional information about issues that could lead to material changes in performance is contained in Magellan's filings with the Securities and Exchange Commission, including Magellan's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018 and subsequent reports on Form 8-K. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, especially under the heading "Risk Factors." Forward-looking statements made by the companies in this release are based only on information currently known, and the companies undertake no obligation to revise any forward-looking statements to reflect events or circumstances learned of or occurring after today's date.
Paula Farrell, Investor Relations
Bruce Heine, Media Relations
Meredith Howard, Media Relations
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