Magellan Midstream Partners has completed the acquisition of pipeline assets in Texas and New Mexico from Plains All American Pipeline for $57m, Of the earlier announced combined purchase price of $190m.
The pipeline system consists of about 250 miles of common carrier pipeline that transports refined petroleum products from El Paso, Texas.
The newly acquired system also deliver products north to Albuquerque, New Mexico and supplies products south to the US-Mexico border for delivery within Mexico through a third-party pipeline.
Magellan Midstream Partners chief executive officer Michael Mears said the pipeline system serves as a natural extension of its existing refined products pipeline system, with current connections in the El Paso market.
"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," Mears added.
Magellan has funded the acquisition of Texas-New Mexico pipelines with cash on hand.
The company’s previously-announced acquisition of 550 miles of common carrier pipeline, Rocky Mountain pipeline system, is pending, subject to approval by the Federal Trade Commission.