Pipeline operator Magellan Midstream Partners L.P. (MMP - Free Report) announced its intention to construct a new high-capacity marine terminal in Pasadena, TX along the Houston Ship Channel to handle refined petroleum products.
The project will begin with the construction of a refined products and ethanol storage with a capacity of approximately 1 million barrels. Moreover, a new marine dock capable of handling Panamax ships or barges will be part of the initial construction phase. Also, the project will involve the construction of a 36-inch pipeline between its Galena Park, TX, terminal and the new Pasadena terminal in order to enhance connectivity and distribution. In addition, Magellan Midstream will connect its existing 18-inch Texas City-to-Pasadena pipeline to the new facility.
The project is likely to cost approximately $335 million and is expected to become operational in early 2019. The capacity of the new Pasadena facility could further be expanded to include up to 10 million barrels of storage and up to five docks in case of higher demand.
Tulsa, OK-based Magellan Midstream is a master limited partnership (MLP) that primarily transports, stores, and distributes refined petroleum products and, to a lesser extent, ammonia. Magellan owns an attractive portfolio of energy infrastructure assets that generate stable and recurring fee- and tariff-based revenues.
Magellan Midstream plans to release its quarterly results on Aug 2, 2016. The Zacks Consensus Estimate for the second quarter is 73 cents per share. Last quarter, the partnership had reported earnings per share of 87 cents that beat the Zacks Consensus Estimate of 83 cents.
Currently, Magellan Midstream carries a Zacks Rank #4 (Sell).
Some better-ranked players from the oil & gas production and pipeline industry include Enable Midstream Partners, LP (ENBL - Free Report) , ONEOK Partners, L.P and Plains All American Pipeline, L.P. (PAA - Free Report) . All these stocks hold a Zacks Rank #2 (Buy).
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