Magellan Midstream Partners plans to construct an additional 300,000 barrels of storage following an agreement with Trafigura.
The new fee-based, take-or-pay agreement is for Trafigura's exclusive use of Magellan's condensate splitter in Corpus Christi, Texas.
Magellan recently completed construction of the splitter, which can process 50,000 barrels per day of condensate. It is expected to begin commercial operation during late second quarter 2017.
As part of the agreement, Magellan will also build an additional 300,000 barrels of storage, for a total of 1.5 million barrels of storage to support the condensate splitter. It will also make other minor modifications.
The agreement was entered into as part of an amicable resolution of the dispute between the parties under a previous contract. Magellan has dismissed its lawsuit again Trafigura as part of the resolution.
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