Magellan Midstream Partners has acquired the remaining interest in a joint venture to build 4.25 million barrels of crude oil storage in Cushing, Oklahoma.
Magellan purchased the joint venture from private investors who were also partial owners and will store its crude oil spread out through seventeen 250,000 barrel tanks.
Previously Magellan had a 65% stake in the project and bought the remaining share from a private equity firm which was not named.
As a result of the acquisition, Magellan is upping its 2011 expansion funds and spending a further $45 million (€33 million) on previous estimates.
It is now to spend $215 million on its expansion plans.
This most recent acquisition project is expected to cost about $110 million and will begin operation in Q2 2011 with seven tanks and then the last 10 tanks will be in use by Q4 2011.
The main oil hub for Magellan is at the New York Mercantile Exchange but it has an oversupply and the additional capacity storage at the new site in Oklahoma should help ease this.
Magellan currently stores about 70 million barrels of petroleum in 85 terminals.