01 July 2013 21:07 [Source: ICIS news]
HOUSTON (ICIS)--Magellan Midstream has closed on its $57m (€44m) acquisition of Plains All American Pipeline’s assets in Texas and New Mexico, the US company announced on Monday.
Announced in February, the acquisition includes about 250 miles (400 km) of pipeline that transports refined petroleum products from El Paso, Texas, to Albuquerque, New Mexico. The pipeline also transports products to the US-Mexico border, where a third-party handles deliveries in Mexico.
“This pipeline system serves as a natural extension of our existing refined products pipeline system, with current connections in the El Paso market,” said Michael Mears, CEO at Magellan. “With this newly acquired pipeline system, Magellan is able to provide options for customers in Albuquerque and central New Mexico to access refined products from West Texas, Gulf Coast and Mid-Continent refiners.”
The remaining part of the combined $190m deal - Magellan’s acquisition of Plains All American Pipeline’s Rocky Mountain system - is pending and subject to approval by the US Federal Trade Commission (FTC).
That acquisition would include about 550 miles of pipeline that distributes refined petroleum products in Colorado, South Dakota and Wyoming.
($1 = €0.77)
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