Noble Midstream Partners LP and Greenfield Midstream, through affiliate Black Diamond Gathering LLC, exercised an option to acquire an additional 20% membership interest in Saddlehorn Pipeline Co. LLC for $155 million, effective Feb. 1, 2020.
The option was previously granted to Black Diamond in conjunction with recent volume commitments to the pipeline.
The Saddlehorn pipeline is currently capable of transporting 190,000 b/d of crude oil and condensate from the DJ and Powder River basins to storage facilities in Cushing, Okla. Supported by increased volume commitments from shippers, the pipeline's capacity is being increased by 100,000 b/d to a new total capacity of 290,000 b/d (OGJ Online, Aug. 29, 2019). The extra capacity is expected to be available later this year following the addition of incremental pumping and storage capabilities.
After Black Diamond's purchase, with Magellan Midstream Partners LP and Plains All American Pipeline LP each selling a 10% interest, Magellan and Plains each own a 30% membership interest in Saddlehorn. Black Diamond and Western Midstream Partners LP each own a 20% membership interest. Magellan continues to serve as operator.
