The plan includes expansions at its storage terminals as well as pipelines. Magellan owns and operates more than 80 fuel terminals, a 9,500-mile products pipeline system and a 1,100-mile ammonia pipeline system. Most of which is in the Midwest and Southeast, and on the Gulf Coast.
“We are currently building more than 4 million bbl at various (terminal) locations along our system, almost all backed by long-term customer contracts,” Bruce Heine, a company spokesman, told OPIS.
“We will spend $160 million in 2010 and 2011 to complete projects already underway,” he added.
The storage expansions underway at its terminals are additional 1.4 million bbl capacity at East Houston, Texas, Kansas City, Kan., 800,000 bbl, Marrero, La., 600,000 bbl, Frost, Texas, 600,000 bbl, Galena Park, Texas, 600,000 bbl,
El Paso, Texas, 400,000 bbl, Barnsdall, Okla., 300,000 bbl, Scott City, Kan., 100,000 bbl and Fort Smith, Arkansas, 100,000 bbl. In addition, about 70% of all Magellan terminals have ethanol blending capabilities. That percentage will increase as another 11 locations, mainly in southeastern terminals, will have ethanol blending capabilities as well.
These investments generally run $2-3 million per location.
Also, Magellan is continuing to assess more than $500 million worth of potential growth projects that are in earlier stages of review for future investment.
These projects are expected to be mainly storage related.