| Magellan Midstream, TRP Enter Pipeline Connector Deal - Analyst Blog | |
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Pipeline operator, Magellan Midstream Partners, L.P. MMP announced that it has entered into a joint development agreement with TransCanada Corporation TRP to build a Houston pipeline connector.
The 9-mile, 24-inch diameter pipeline would connect TransCanada’s Houston tank terminal with Magellan's East Houston terminal. Each party would have a 50% ownership in the project.
The connector would provide Keystone and Marketlink shippers access to the Houston and Texas City crude oil distribution system owned by Magellan Midstream.
The project is estimated to cost about $50 million. Magellan Midstream would be both the construction manager and the operator of the pipeline, which is expected to commence operations in the latter half of 2016. The partnership plans to develop associated infrastructure at its East Houston terminal to facilitate additional flow from this new pipeline. Construction work at TransCanada's Houston tank terminal is likely to complete this year.
Tulsa, OK-based Magellan Midstream Partners owns and operates a diversified portfolio of energy infrastructure assets. The partnership primarily transports, stores, and distributes refined petroleum products and, to a lesser extent, ammonia.
Magellan’s investment grade credit rating enables it to draw capital from the market at a reasonable cost. Moreover, the partnership has established a track of consistent distribution growth. However, Magellan is susceptible to lower demand for refined products, commodity price fluctuations and cost overruns on expansion projects.
Currently, Magellan Midstream carries a Zacks Rank #3 (Hold).
Better-ranked players from the oil and gas production and pipeline industry include Valero Energy Partners LP VLP and Energy Transfer Equity, L.P. ETE. While Valero Energy Partners sports a Zacks Rank #1 (Strong Buy), Energy Transfer Equity holds a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MAGELLAN MDSTRM (MMP): Free Stock Analysis Report ENERGY TRAN EQT (ETE): Free Stock Analysis Report TRANSCDA CORP (TRP): Free Stock Analysis Report VALERO EGY PTNR (VLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Transcanada Pipelines Ltd.
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CODE : TRP.TO |
ISIN : CA89353D1078 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Transcanada Pipelines is a producing company based in Canada. Transcanada Pipelines is listed in Canada. Its market capitalisation is CA$ 42.5 billions as of today (US$ 30.9 billions, € 29.1 billions). Its stock quote reached its lowest recent point on February 18, 2000 at CA$ 10.00, and its highest recent level on February 21, 2020 at CA$ 76.58. Transcanada Pipelines has 867 229 952 shares outstanding. |