Tulsa, Okla.-Magellan Midstream Partners LP told analysts that it expects to complete hydrotesting on its anhydrous ammonia pipeline next summer during a time when volumes are generally very low. The line was down the majority of the third quarter ending Sept. 30, 2010, impacting pipeline results (GM Nov. 8, p. 14). By the end of 2010, Magellan expects some 75 percent of the testing will have been completed. Chairman, President, and CEO Don Wellendorf said major shippers on the line wanted much of the integrity work done so that the line would be available for use in the fourth quarter and next year. As a result, he expects the line to be profitable in the fourth quarter 2010 and return to historical levels in 2011. “So we dramatically accelerated the pace at which we did that work and that’s why we basically shut down in the third quarter and that’s why the loss was bigger than you’ve seen in the past, because the line in effect wasn’t running.” He said the work actually revealed a line that was in better shape than the company had estimated. “We didn’t think it was in terrible shape, but we had some thoughts about how much repair work would need to be done and it turned out to be better than that.”
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