Source: Magellan Midstream Partners
Magellan Midstream Partners (NYSE:MMP) plans to construct an incremental 2.25 million barrels of crude oil storage in the crude oil hub of Cushing, Oklahoma in conjunction with a private investor group.
Combined with the initial 2 million barrels announced in May 2010, this crude oil construction project now totals 4.25 million barrels of storage, all supported by long-term customer contracts.
Magellan will be the majority owner and operator of the storage, which is expected to be operational in phases beginning mid-2011, with the final tanks operational by the end of 2011.
As a result of this increased project scope, the partnership is increasing its 2011 expansion spending estimates by $25 million. Including acquisitions to date, current expansion spending estimates are $565 million during 2010 with an additional $125 million, primarily in 2011, necessary to complete these projects.