SemGroup Corp. and DCP Midstream LP are holding an open season to solicit binding commitments for development of a pipeline system to transport segregated batches of light crude oil from Cushing, Okla., to Houston. The proposed Gladiator Pipeline would start at SemGroup’s Cushing terminal.
Gladiator will offer DJ basin and other Midcontinent producers an additional outlet to the US Gulf Coast, SemGroup said. The pipeline’s Houston terminus would provide access to refineries, crude oil storage, and export terminals.
Pending sufficient interest and regulatory approvals, Gladiator could be operational by third-quarter 2020. The open season ends Jan. 31, 2019.
DCP Midstream also plans to expand NGL takeaway from DJ basin by fourth-quarter 2019. The company will extend its Southern Hills system via White Cliffs pipeline, adding 90,000 b/d by fourth-quarter 2019, expandable to 120,000 b/d. A planned 100,000 b/d expansion of the Front Range pipeline to 250,000 b/d and a 90,000 b/d expansion of the Texas Express pipeline are both expected to enter service second-quarter 2019.