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[ Summary: Magellan Midstream Partners recently completed construction of a new condensate splitter, which is capable of processing 50,000 barrels per day of condensate. Based on the new agreement, Magellan expects to begin commercial operation of the splitter during late second quarter 2017. ]
In Service Date: Q2 2017
Capacity: 50,000 BPD
In conjunction with the new agreement, Magellan will build an additional 300,000 barrels of storage (for a total of 1.5 million barrels of storage to support the condensate splitter) and make other minor modifications to the splitter, increasing the expected capital spending for the project to $330 million from the prior estimate of $300 million. Based on the new spending estimates for the splitter, Magellan expects to generate a 7 times EBITDA multiple on its investment.
Magellan has entered into a new fee-based, take-or-pay agreement with Trafigura Trading LLC for the exclusive use of Magellan’s condensate splitter in Corpus Christi, Texas.
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