Magellan Midstream Partners LP (NYSE: MMP) has extended the open season to solicit capacity commitments from shippers to transport refined petroleum products to Little Rock, Arkansas. Management is currently in advanced discussions with potential shippers and remains optimistic about the prospects for this project. Binding commitments are now due by 5 p.m. Central Time on Dec. 13. The extension provides potential shippers additional time to make commitments.
Magellan is assessing customer interest to transport up to 75,000 barrels per day of gasoline, diesel fuel, and jet fuel from the partnership's Fort Smith, Arkansas, terminal, providing the Little Rock market access to refined products from Mid-Continent and Gulf Coast refineries via Magellan's extensive refined petroleum products pipeline system. The potential project includes construction of an approximately 160-mile, 12-inch diameter pipeline from Magellan's Fort Smith terminal to the Little Rock market.
Subject to the results of this open season and receipt of the necessary permits and regulatory approval, the potential pipeline could be operational in the third quarter of 2015.