Magellan to buy 800 miles of oil products pipelines for $190 mln
NEW YORK Feb 22 (Reuters) - Magellan Midstream Partners LP said on Friday it would buy 800 miles of refined petroleum products pipelines from Plains All American Pipeline LP for $190 million, expanding a network that is already the longest in the United States.
The acquisition includes two pipeline systems:
-- 550 miles of common carrier pipeline that distributes products in Colorado, South Dakota and Wyoming and includes four terminals capable of storing just under 1.7 million barrels.
-- 250 miles of common carrier pipeline carrying products from El Paso, Texas, to Albuquerque, New Mexico, as well as to the Mexican border for distribution in Mexico by a third party.
"These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve," said Michael Mears, Magellan chief executive.
Magellan expects to close the deal, which it will fund with cash and, if necessary, loans from a revolving credit facility, in the second quarter.
Magellan's network of pipelines taps into more than 40 percent of U.S. refining capacity and can store more than 80 million barrels of gasoline, diesel and crude oil.