Posted on 03/03/2015 5:52:14 AM PST by thackney
Magellan Midstream Partners and Plains All American Pipeline are teaming up on a new $850 million, 550-mile pipeline to carry crude oil from Colorado to Cushing, Oklahoma.
The new pipeline, called the Saddlehorn, will be built and owned by the Saddlehorn Pipeline Co., a 50-50 joint venture between the two companies.
In an announcement Friday, Plains and Magellan said the new line has binding commitments from producers Noble Energy and Anadarko Petroleum Corp., and that Anadarko has an option to obtain a 20 percent stake in the venture.
The line could be in service by mid-2016 if permitting and construction go smoothly, according to the announcement. Magellan said it will serve as construction manager and pipeline operator.
“Aligning with Plains makes strategic sense due to their significant marketing and pipeline presence in this region, adding further value to the pipeline project to deliver crude oil to the Cushing hub,” Magellan CEO Michael Mears said in a written statement.
When completed, the new line will transportoil from the DJ Basin and other potential Rocky Mountain plays to Plains- and Magellan-owned storage in the oil hub of Cushing.
LOVE the announcement and will try to remember
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