Energy Transfer, Magellan Midstream, MPLX & Delek to Jointly Construct the “Permian Gulf Coast” or “PGC Pipeline” for...
September 04 2018 - 7:00AM
Business Wire
Energy Transfer Partners, L.P. (NYSE: ETP) (“Energy Transfer”),
Magellan Midstream Partners, L.P. (NYSE: MMP) (“Magellan”), MPLX LP
(NYSE: MPLX) (“MPLX”) and Delek US Holdings, Inc. (NYSE: DK)
(“Delek”) announced today that they have received sufficient
commitments to proceed with plans to construct a new 30-inch
diameter common carrier pipeline to transport crude oil from the
Permian Basin to the Texas Gulf Coast region, with the ability to
increase the pipe diameter to expand the capacity based upon
additional commitments received during the upcoming open season. An
open season for additional shipper volume commitments on the new
pipeline system will be launched this week.
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The 600-mile pipeline system is expected to be operational in
mid-2020 with multiple Texas origins, including Wink, Crane and
Midland. The pipeline system will have the strategic capability to
transport crude oil to both Energy Transfer’s Nederland, Texas
terminal and Magellan’s East Houston, Texas terminal for ultimate
delivery through their respective distribution systems.
The project is subject to receipt of customary regulatory and
Board approvals of the respective entities.
About Energy Transfer Partners, L.P.
Energy Transfer Partners, L.P. (NYSE: ETP) is a
master limited partnership that owns and operates one of the
largest and most diversified portfolios of energy assets
in the United States. Strategically positioned in all of the
major U.S. production basins, ETP owns and operates a
geographically diverse portfolio of complementary natural gas
midstream, intrastate and interstate transportation and storage
assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; NGL fractionation; and
various acquisition and marketing assets. ETP’s general partner is
owned by Energy Transfer Equity, L.P. (ETE). More
information is available at www.energytransfer.com.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly
traded partnership that primarily transports, stores and
distributes refined petroleum products and crude oil. Magellan owns
the longest refined petroleum products pipeline system in the
country, with access to nearly 50% of the nation’s refining
capacity, and can store more than 100 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
About MPLX LP
MPLX LP (NYSE: MPLX) is a diversified, growth-oriented master
limited partnership formed in 2012 by Marathon Petroleum
Corporation (MPC) to own, operate, develop and acquire midstream
energy infrastructure assets. MPLX is engaged in the gathering,
processing and transportation of natural gas; the gathering,
transportation, fractionation, storage and marketing of NGLs; and
the transportation, storage and distribution of crude oil and
refined petroleum products through a marine fleet and approximately
10,000 miles of crude oil and light product pipelines.
Headquartered in Findlay, Ohio, MPLX's assets consist of a network
of crude oil and products pipelines and supporting assets,
including storage facilities (tank farms) located in the Midwest
and Gulf Coast regions of the United States; 62 light-product
terminals with approximately 24 million barrels of storage
capacity; storage caverns with approximately 2.8 million barrels of
storage capacity; a barge dock facility with approximately 80,000
barrels per day of crude oil and product throughput capacity; and
gathering and processing assets that include approximately 5.9
billion cubic feet per day of gathering capacity, 8.7 billion cubic
feet per day of natural gas processing capacity and 610,000 barrels
per day of fractionation capacity. More information is available at
www.mplx.com.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. (NYSE: DK) is a diversified downstream
energy company with assets in petroleum refining, logistics,
renewable fuels and convenience store retailing. The refining
assets consist of refineries operated in Tyler and Big Spring,
Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a
combined nameplate crude throughput capacity of 302,000 barrels per
day. The logistics operations primarily consist of Delek Logistics
Partners, LP. Delek US Holdings, Inc. and its affiliates own
approximately 63% (including the 2 percent general partner
interest) of Delek Logistics Partners, LP. Delek Logistics
Partners, LP (DKL) is a growth-oriented master limited partnership
focused on owning and operating midstream energy infrastructure
assets. The convenience store retail business is the largest
7-Eleven licensee in the United States and operates approximately
300 convenience stores in central and west Texas and New Mexico.
More information is available at www.delekus.com.
This press release contains forward-looking statements within
the meaning of the federal securities laws. These forward-looking
statements relate to, among other things, statements with respect
to forecasts regarding capacity and timing for becoming operational
for the opportunities discussed above. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "design," "estimate," "expect," "forecast," "intend,"
"plan," "project," "potential," "could," "may," "should," "would,"
"will" or other similar expressions that convey the uncertainty of
future events or outcomes. Such forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the
control of the companies and are difficult to predict. Although
management of Energy Transfer Partners, L.P., Magellan Midstream
Partners, L.P., MPLX LP and Delek US Holdings, Inc. (the
“companies”) believe any such statements are based on reasonable
assumptions, there is no assurance that actual outcomes will not be
materially different. Among the key risk factors associated with
the project that may have a direct impact on completion of the
project and construction of the pipeline or the pipeline’s and the
companies’ results of operations and financial condition are: (1)
the ability of the companies to negotiate and enter into definitive
agreements and to obtain all required rights-of-way, permits and
other approvals on a timely basis; (2) the ability to complete
construction of the project on time and at expected costs; (3)
price fluctuations and overall demand for crude oil; (4) changes in
the pipeline’s tariff rates or other terms as required by state or
federal regulatory authorities; (5) the occurrence of an
operational hazard or unforeseen interruption; (6) disruption in
the debt and equity markets that negatively impacts the companies’
abilities to finance capital spending and (7) willingness to incur
or failure of customers or vendors to meet or continue contractual
obligations related to this project. Additional information about
issues that could lead to material changes in performance is
contained in filings with the Securities and Exchange Commission
for all companies. The companies undertake no obligation to revise
these forward-looking statements to reflect events or circumstances
occurring after today's date.
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version on businesswire.com: https://www.businesswire.com/news/home/20180904005294/en/
Energy Transfer:Bill Baerg, Lyndsay Hannah or Brent Ratliff,
214-981-0795Investor RelationsorVicki Granado, 214-840-5820Media
RelationsorMagellan:Paula Farrell, 918-574-7650Investor
Relationspaula.farrell@magellanlp.comorBruce Heine,
918-574-7010Media
Relationsbruce.heine@magellanlp.comorMPLX:Kristina Kazarian,
419-421-2071Investor RelationsorChuck Rice, 419-421-2521Media
RelationsorDelek:Keith Johnson, 615-435-1366Investor
Relationskeith.johnson@delekus.comorMichael Ralsky,
615-435-1407Media Relationsmichael.ralsky@delekus.com
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