The 4.25 million barrels of crude oil storage project is expected to be operational in phases beginning second quarter of 2011.
Following the acquisition of interest, the company increases its 2011 expansion capital spending estimate to $215m from its previous estimate of $170m for the acquisition cost and financing of the project.
The project is estimated to cost about $110m including the acquisition of the remaining ownership stake.
Magellan was formed to own, operate and acquire a diversified portfolio of energy assets, and it primarily transports, stores and distributes refined petroleum products.
