US Magellan Midstream to acquire 800 miles of pipeline

22 February 2013 17:57  [Source: ICIS news]

HOUSTON (ICIS)--US-based Magellan Midstream announced on Friday it is set to acquire 800 miles (1,287km) of refined petroleum products pipeline from Plains All American Pipeline.

The agreement, valued at $190m (€144m), includes about 550 miles of pipeline in Colorado, South Dakota and Wyoming, as well as 250 miles of pipeline in west Texas and New Mexico, the company said in a press release.

Magellan expects the deal to close in the second quarter of 2013, subject to regulatory approvals.

"This acquisition utilises Magellan's expertise in transporting and storing petroleum products," said CEO Michael Mears. "These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve."

Magellan owns the longest refined petroleum products pipeline system in the US, with access to more than 40% of the nation's refining capacity, according to the company.

($1 = €0.76)

By: Jeremy Pafford
+1 713 525 2653

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