TransMontaigne Operating, a wholly-owned subsidiary of TransMontaigne Partners (TLP), has signed a ten-year capacity lease agreement with Magellan Pipeline.
Set to come into force on 1 March, the agreement will cover 100% of the capacity of TLP’s terminals in Rogers, Arkansas, Mt Vernon, Missouri, and its Razorback Pipeline which runs from Mt Vernon to Rogers.
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The terminals represent around 2% of TLP’s total tank capacity, according to Reuters.
With a capacity of 30,000 barrels a day, the Razorback Pipeline accounts for most of the company’s pipeline capacity.
TLP CEO Chuck Dunlap said: "We are very pleased to complete this long-term fee-based transaction with such a high quality customer like Magellan."
According to TransMontaigne Partners, the new agreement is expected to generate approximately the same total annual revenue as the Morgan Stanley agreement.
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By GlobalDataUnder the terms of the agreement, TLP will lease capacity at two oil product terminals and a pipeline to Magellan Pipeline, a wholly owned affiliate of Magellan Midstream Partners.
Morgan Stanley Capital Group, the trading division of Morgan Stanley, owns 100% of TransMontaigne, which controls the general partner of TransMontaigne Partners in Denver.
Terminal and transportation company TLP serves crude oil and refined petroleum products distributors and marketers across the US.
