Magellan has re-contracted some of its contracts on the Longhorn pipeline. Based on the average re-contracting rate, we expect the average tariff on Longhorn to be modestly lower in 2019 than in 2018. This is mainly due to competition from an overbuilding of crude pipelines and newer pipelines built in the Permian basin, which has resulted in slightly lower rates on average. We also note that Longhorn will face another round of re-contracting at the end of 2020. The average remaining contract life on Longhorn is five years, with an average committed rate of roughly $2 per barrel. We expect increased capital spending in 2019 mainly due to the Pasadena Marine Terminal Joint venture , for the Texas refined products
