NEW YORK Feb 22 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
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.