Magellan Midstream Partners LP has entered into a new fee-based, take-or-pay agreement with Trafigura Trading LLC for the exclusive use of Mage llan’s condensate splitter in Corpus Christi, Texas. Magellan recently completed construction of the splitter, which is capable of processing 50,000 barrels per day of condensate. It is fully supported by the long-term commitment from Trafigura. Based on the new agreement, Magellan expects to begin commercial operation of the splitter late in the second quarter of 2017.
In conjunction with the new agreement, Magellan will build an additional 300,000 barrels of storage, totaling 1.5 million barrels of storage to support the condensate splitter. Including other minor modifications to the splitter, the capital spending for the project is expected to increase to $330 million.
For more information, visit www. magellanlp.com or call (918) 574-7000.