Magellan Midstream Partners LP extended the open season for commitments on the Saddlehorn Pipeline. The pipeline will transport various grades of crude oil from the Niobrara play in northeast Colorado to Magellan’s storage facilities in Cushing, Okla. Binding commitments are due by 5 p.m. Central time on Dec. 15.
The pipeline will be about 600 miles long and 20 inches in diameter, with a transport capacity of up to 400,000 barrels per day of crude oil. Magellan is also broadening the project’s scope to include up to three new origin points for receipt of crude oil, subject to sufficient shipper support for the new origins. Additional origin points in Colorado could be available in Weld County near Riverside, Briggsdale and Pawnee.
Magellan received binding commitments from a wholly owned subsidiary of Anadarko Petroleum Corp. and Noble Energy Inc., and has also entered into letters of intent with Anadarko and Saddle Butte Pipeline II LLC for potential equity ownership in the pipeline.
Subject to receipt of any necessary permits and regulatory approvals, the Saddlehorn Pipeline is expected to enter service during second-quarter 2016. The project scope, cost and ownership structure of the Saddlehorn Pipeline will be finalized after the open season closes and the total committed volumes are known.
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