Tulsa-Based Magellan Acquires Petroleum Storage, Pipelines for $289 Million

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Magellan Midstream Partners LP said Tuesday it will spend $289 million to expand its crude oil logistics and energy footprint in the Cushing and Houston markets, acquiring 7.8 million barrels of crude oil storage and more than 100 miles of active petroleum pipelines from BP Pipelines of North America Inc.

The move is expected to aid the development of Magellan's East Houston terminal into a key distribution point.

Magellan also announced the company plans to sell 5 million units in a registered public offering and use the proceeds to pay a portion of the purchase price.

"To avoid the increasing saturation of Midwest markets, crude must move south from …