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Magellan in pipeline deal for $190 million

TULSA, Okla. (AP) -- Magellan Midstream Partners LP said Friday that it plans to buy about 800 miles of refined petroleum products pipeline from Plains All American Pipeline L.P. for $190 million.

The company said the pipelines are a natural extension of its existing refined products distribution system and provides it with new markets.

Magellan said the deal includes about 550 miles of pipeline that distributes refined petroleum products in Colorado, South Dakota and Wyoming. The system includes four terminals with nearly 1.7 million barrels of storage.

It will also buy about 250 miles of common carrier pipeline that transports refined petroleum products north from El Paso, Texas, delivering products to Albuquerque, New Mexico, and transporting products south to the Texas-Mexico border for delivery via a third-party pipeline within Mexico.

Magellan expects the deal will immediately add to its cash flow per unit. It is expected to close in the second quarter.

Magellan, based in Tulsa, Okla., is a publicly traded partnership that transports, stores and distributes petroleum products.

Shares of the company rose 16 cents to $49.56 in midday trading.