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Researched by Industrial Info Resources (Sugar Land, Texas)--Magellan Midstream Partners LP (NYSE:MMP) (Tulsa, Oklahoma) announced Thursday it had agreed to sell its independent terminals network, which comprises 26 refined petroleum products terminals with approximately 6 million barrels of storage, to Buckeye Partners LP (NYSE:BPL) (Houston, Texas) for $435 million. These terminals are "independent" because they are not attached to Magellan's own pipelines, but to third-party common carrier interstate systems, such as the Colonial and Plantation pipelines. Industrial Info is tracking $2.2 billion worth of active projects from Magellan.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Terminals Plant Database can click here for a full list of the 26 terminals Magellan plans to sell to Buckeye.
Click on the image at right for a map of these terminals.
Magellan already has scheduled or started work on a series of 2021 tank inspections and upgrades throughout its terminals network. These planned maintenance projects conform to the American Petroleum Institute's API-653 inspection standards, which address the inspection, repair, alteration and reconstruction of aboveground steel storage tanks used in the petroleum and chemical industries. Subscribers can click here for a list of those related to the 26 terminals to be sold to Buckeye.
The deal with Buckeye follows Magellan's April sale of nearly half of its membership interest in MVP Terminalling LLC, its marine terminal joint venture in Texas, to an undisclosed financial buyer for $270 million. Magellan now owns about 25% of MVP Terminalling and remains the operator of its refined petroleum products marine storage terminal in Pasadena, Texas, along the Houston Ship Channel. The terminal includes more than 5 million barrels of storage, two ship docks and truck loading facilities, with space to nearly double its current capacity, according to the company.
Magellan and its MVP partners, which include a subsidiary of Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), are considering a proposed Phase IV expansion of the Pasadena terminal, which would add eight tanks to the existing facility. Subscribers can read more details in Industrial Info's project report.
Executives at Magellan say the company will use proceeds from the Buckeye and MVP deals "consistent with our stated capital allocation priorities." Michael Mears, the chief executive officer of Magellan, recently estimated the company's overall growth capital budget would remain "in the $100 million range per year for the next few years."
"While we continue to assess potential low-risk projects to expand our service offering and generate additional value for our investors, our projected expansion capital spending currently totals less than $100 million, with $75 million of expected spending in 2021 and $15 million in 2022," Mears said in a recent quarterly earnings-related conference call.
Among Magellan's expansion projects under construction is the $20 million Crude Oil Pump Station 2 near Kinsley, Kansas, which is designed to increase the Saddlehorn Crude Oil Pipeline's capacity from 190,000 barrels per day (BBL/d) to 290,000 BBL/d. Magellan already completed a series of pump station additions and expansions earlier this year across Kansas and Oklahoma to bolster Saddlehorn's capacity. Subscribers can read more details in Industrial Info's project report.
Magellan expects its total refined products shipments in 2021 will see an overall increase of 13% when compared with 2020. The company believes recent expansion projects in Texas will more than offset "the lingering impact of the COVID-19 pandemic and still-recovering drilling activity."
"These estimates now include 13% higher gasoline, 10% higher distillate and 25% higher aviation fuel shipments, based on general trends so far this year and expected continuing recovery in travel, economic and drilling activity throughout the year," Magellan said in its quarterly earnings-related press release.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Terminals Plant Database can click here for a full list of the 26 terminals Magellan plans to sell to Buckeye.
Click on the image at right for a map of these terminals.Magellan already has scheduled or started work on a series of 2021 tank inspections and upgrades throughout its terminals network. These planned maintenance projects conform to the American Petroleum Institute's API-653 inspection standards, which address the inspection, repair, alteration and reconstruction of aboveground steel storage tanks used in the petroleum and chemical industries. Subscribers can click here for a list of those related to the 26 terminals to be sold to Buckeye.
The deal with Buckeye follows Magellan's April sale of nearly half of its membership interest in MVP Terminalling LLC, its marine terminal joint venture in Texas, to an undisclosed financial buyer for $270 million. Magellan now owns about 25% of MVP Terminalling and remains the operator of its refined petroleum products marine storage terminal in Pasadena, Texas, along the Houston Ship Channel. The terminal includes more than 5 million barrels of storage, two ship docks and truck loading facilities, with space to nearly double its current capacity, according to the company.
Magellan and its MVP partners, which include a subsidiary of Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), are considering a proposed Phase IV expansion of the Pasadena terminal, which would add eight tanks to the existing facility. Subscribers can read more details in Industrial Info's project report.
Executives at Magellan say the company will use proceeds from the Buckeye and MVP deals "consistent with our stated capital allocation priorities." Michael Mears, the chief executive officer of Magellan, recently estimated the company's overall growth capital budget would remain "in the $100 million range per year for the next few years."
"While we continue to assess potential low-risk projects to expand our service offering and generate additional value for our investors, our projected expansion capital spending currently totals less than $100 million, with $75 million of expected spending in 2021 and $15 million in 2022," Mears said in a recent quarterly earnings-related conference call.
Among Magellan's expansion projects under construction is the $20 million Crude Oil Pump Station 2 near Kinsley, Kansas, which is designed to increase the Saddlehorn Crude Oil Pipeline's capacity from 190,000 barrels per day (BBL/d) to 290,000 BBL/d. Magellan already completed a series of pump station additions and expansions earlier this year across Kansas and Oklahoma to bolster Saddlehorn's capacity. Subscribers can read more details in Industrial Info's project report.
Magellan expects its total refined products shipments in 2021 will see an overall increase of 13% when compared with 2020. The company believes recent expansion projects in Texas will more than offset "the lingering impact of the COVID-19 pandemic and still-recovering drilling activity."
"These estimates now include 13% higher gasoline, 10% higher distillate and 25% higher aviation fuel shipments, based on general trends so far this year and expected continuing recovery in travel, economic and drilling activity throughout the year," Magellan said in its quarterly earnings-related press release.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
