Magellan Midstream to expand Galena Park terminal capabilities

Magellan Midstream Partners LP (NYSE: MMP) is expanding the capabilities at its Galena Park, Texas, terminal on the Houston Ship Channel. The expansion includes construction of a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft and new pipeline infrastructure to provide movements of refined products, blendstocks, and crude oil to the new marine dock at rates up to 20,000 barrels per hour.

Magellan is also expanding connectivity between the partnership's Galena Park terminal and its Houston crude oil distribution system. Once complete, customers will have the ability to access marine crude oil storage and dock throughput services at Galena Park from any origin on the Houston crude oil distribution system.

The enhancements are expected to cost $115 million. Subject to receipt of necessary permits and regulatory approval, Magellan expects the connectivity between Galena Park and the Houston distribution system to be operational by the end of 2016 and the new dock to be fully operational by the end of 2018.

In addition, Magellan currently has available land to construct approximately 1.5 million barrels of additional refined products or crude oil tankage at Galena Park once the new marine capabilities are operational.

Magellan's Galena Park terminal is located along the Houston Ship Channel and currently includes 14 million barrels of storage for refined products, blendstocks, heavy oils, and crude oil. The facility also offers connectivity to multiple common carrier pipelines, four docks to accommodate both ship and barge traffic, and loading/unloading capabilities for trucks and rail cars.

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