Magellan Midstream Partners LP announced that it will proceed with the recently announced Saddlehorn Pipeline. The planned 600-mile, 20-inch diameter pipeline will transport up to 400,000 barrels per day of crude oil from Platteville, Colo., to Magellan’s Cushing, Okla., storage facilities. Binding commitments have been received from a wholly owned subsidiary of Anadarko Petroleum Corp. and Noble Energy Inc. as part of the pipeline’s ongoing open season.
The current open season for the pipeline has been extended and includes a new tariff rate structure, with binding commitments due from potential shippers by 5 p.m. Central time on Nov. 20. All potential customers will have an equal opportunity to obtain capacity in the open season.
Magellan also entered into letters of intent with Anadarko and Saddle Butte Pipeline II LLC for potential equity ownership in Saddlehorn Pipeline.
Subject to receipt of any necessary permits and regulatory approvals, the pipeline is expected to be operational during second-quarter 2016. The project scope, cost and ownership structure of the pipeline will be finalized after the open season closes and the total committed volumes are known.
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