<article><p class="lead">Magellan Midstream will decommission its 1,100-mile Texas to upper Midwest ammonia pipeline system later this year, citing low margins, high operating costs and potentially lower ammonia supplies.</p><p>Magellan started the decommissioning process during the fourth quarter, the company announced during its quarterly earnings call today.</p><p>Magellan chief executive Michael Mears said the company has considered repurposing the pipeline system in past years, but the costs associated with the maintenance were viewed as unfeasible. </p><p>"[The] expense costs are significantly higher on the ammonia system than really any other pipe we've got, and a lot of that forward forecasting," Mears said. "Our historical costs have been high, but our future costs are expected to be even higher than that."</p><p>The company's ammonia pipeline services various distribution terminals situated throughout the Southern Plains and western Corn Belt, and is serviced by production facilities in Texas and Oklahoma.</p></article>
