Magellan Midstream Cuts Stake in Texas Terminal
Magellan Midstream Partners, L.P. (NYSE: MMP) reported Thursday that it has sold nearly one-half of its membership interest in MVP Terminalling, LLC, its Pasadena, Texas, refined products marine storage terminal joint venture along the Houston Ship Channel.
MMP, which did not identify the buyer, stated that it sold the partial interest for $270 million and now owns approximately 25% of MVP Terminalling. It added that it continues to operate the facility.
“Important energy infrastructure assets – such as those owned by our Pasadena marine terminal joint venture – are critical to both the U.S. and global economy and continue to be highly valued,” remarked Michael Mears, MMP’s CEO. “As Magellan has demonstrated in the past, we regularly review both potential investments and our own asset portfolio for opportunities to unlock incremental value for our investors.”
The MVP facility includes more than 5 million barrels of storage, two ship docks, and truck loading facilities, MMP stated. The firm added the space is available to nearly double MVP’s current capacity.
“With this transaction, we are optimizing our portfolio while retaining a meaningful position in a strategic and state-of-the-art new facility that is well-positioned to continue to meet the growing demand for refined products export logistics,” noted Mears.
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