Saddlehorn Pipeline to expand capacity by 2020

Saddlehorn Pipeline Co. LLC will expand the Saddlehorn pipeline to a new total capacity of 290,000 b/d. The 100,000-b/d increase follows higher volume commitments from shippers during a July open season.

Saddlehorn Pipeline Co. LLC will expand the Saddlehorn pipeline to a new total capacity of 290,000 b/d. The 100,000-b/d increase follows higher volume commitments from shippers during a July open season (OGJ Online, July 2, 2019). The higher capacity is expected to be available in late 2020 following the addition of incremental pumping and storage capabilities.

The pipeline, which is jointly owned by affiliates of Magellan Midstream Partners LP, Plains All American Pipeline LP, and Western Midstream Partners LP, is currently capable of transporting 190,000 b/d of crude and condensate from the DJ and Powder River basins to storage facilities in Cushing, Okla., owned by Magellan and Plains. Magellan serves as operator.

In conjunction with the increased volume commitments, Noble Midstream Partners LP, through its affiliate Black Diamond Gathering LLC, has an option to buy up to a 20% ownership interest in Saddlehorn, with Magellan and Plains each selling up to a 10% interest to Noble Midstream Partners LP if the option  were exercised.        

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