TransMontaigne signs capacity lease agreement with Magellan Pipeline

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.

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.

Under 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.