Magellan Midstream Partners has agreed to buy 700 miles of oil pipeline from the bankrupt Texan Oil company Longhorn Partners Pipeline.
The acquisition will allow Magellan to connect its East Houston storage terminal to its El Paso terminal, which it has recently enlarged.
The pipeline, from Houston to El Paso, had been operated by Magellan for Longhorn prior to the latters collapse.
Magellan will raise $250 million (178 million) for the assets with debt. Another $100 million will be paid for the 'line fill' – the oil currently in the pipeline.
The Longhorn system is an excellent fit with our existing asset portfolio and our stated intent to grow our presence in the Texas market, Magellan CEO Don Wellendorf comments in a written statement.