Magellan Midstream Partners LP plans to construct a condensate splitter at its terminal in Corpus Christi, TX, under a fee-based, take-or-pay agreement with Trafigura AG. The project includes construction of more than one million bbl of storage, dock improvements and two additional truck rack bays at Magellan's terminal as well as pipeline connectivity between Magellan's terminal and Trafigura AG's nearby facility. The splitter will be capable of processing 50,000 b/d of condensate, fully supported by a long-term commitment from Trafigura AG. If warranted by additional demand, Magellan said it could construct an additional 50,000 b/d splitter at the facility. The facilities are expected to cost $250 million and to be operational during the second half of 2016. "Our Corpus Christi terminal is ideally situated to receive condensate from the Eagle Ford Shale, including shipments via our Double Eagle pipeline joint venture, and to offer flexible services and a variety of market options for our customer," said Magellan CEO Michael Mears.
Dominion Resources Inc.expects to raise close to $400 million from spinning off its natural gas infrastructure assets into a master limited partnership (MLP) dubbed Dominion Midstream Partners LP. The proposed spinoff was announced in September and would include the Cove Point liquefied natural gas import terminal, which now has conditional approval to export to gas worldwide (see Daily GPI, Sept. 13, 2013). The partnership would also include a stake in Blue Racer Midstream LLC, which Dominion shares with a Williams unit to carry Appalachian liquids to Gulf Coast and East Coast markets. In addition, the MLP would own Dominion Transmission, East Ohio Gas and a 24% interest in the Iroquois Pipeline (see Shale Daily, Sept. 13, 2013). The timing of the spinoff and the amount of shares to be offered hasn't been revealed. If approved, the MLP would trade on the New York Stock Exchange under "DM." Dominion Resources would remain the majority unit holder.