Magellan Midstream Partners announced that it has signed an agreement to acquire two refined petroleum products pipeline systems in US, from Plains All American Pipeline for $190m.
As part of the deal, the company will acquire Rocky Mountain pipeline system and New Mexico pipeline system. Together the two systems will be about 1,287.4km long.
Rocky Mountain system includes about 885km long pipeline and four terminals with about 1.7 million barrels of storage capacity. The pipeline distributes refined petroleum products in Colorado, South Dakota, and Wyoming.
Magellan’s second pipeline system to be purchased is around 402km and is used to deliver refined petroleum products from El Paso, Texas to Albuquerque, New Mexico.
The pipeline will also supply the products to Texas-Mexico border, through a third party pipeline within Mexico.
Magellan Midstream Partners is a US-based company that mainly transports, stores and distributes petroleum products.