NGL Energy Partners, LP (NYSE:NGL) and Rimrock Midstream, LLC are
pleased to announce the completion of a successful open season for the
Grand Mesa Pipeline (“GMP”) originating in Weld County, Colorado and
terminating at NGL’s Cushing, Oklahoma terminal. Based on the execution
of long-term binding agreements with multiple shippers, GMP has more
than the requisite support to commence construction of the pipeline
system to accommodate the committed volumes. Pipeline operations are
anticipated to commence service in 2016.
The GMP system will include approximately 550 miles of new crude oil
transportation pipeline, multiple truck injection stations, over
1,500,000 barrels of operational storage, and two origination stations
located near the towns of Lucerne and Kersey, Colorado. The system will
allow for the batched transport of various grades of crude oil to ensure
that the integrity of these differing crude qualities is retained when
redelivered into the Cushing oil hub.
It is anticipated that multiple gathering pipelines throughout Weld
County and surrounding counties will deliver to the GMP system. The
recently announced Rimrock Platte River gathering system will deliver
significant volumes from multiple shippers to GMP’s northern origin near
Lucerne, Colorado. Additional planned expansions include trunk line
gathering systems near Kersey and Riverside Reservoir, as well as north
to Cheyenne.
The construction of the Weld County pipeline project will help further
develop the crude and condensate rich areas in and around the DJ and
Wattenberg fields and provide additional options transporting oil
supplies to U.S. markets and refineries in the Midwest, including
several interconnected to the NYMEX designated hub of Cushing, Oklahoma.
GMP not only supports the continued growth and production in the area,
but does so in a cost effective and environmentally responsible way by
reducing the current utilization of rail and truck transportation while
providing jobs and supporting the local economies.
NGL Energy Partners, LP and Rimrock Midstream, LLC would like to thank
the local producers and shippers for their support of the Grand Mesa
Pipeline.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and
operates a vertically integrated energy business with five primary
segments: water solutions, crude oil logistics, NGL logistics, refined
products/renewables and retail propane. NGL completed its initial public
offering in May 2011. For further information, visit NGL’s website at www.nglenergypartners.com.
About Rimrock Midstream, LLC
Rimrock Midstream, LLC is a strategic, growth-oriented company formed to
acquire, develop and operate a portfolio of midstream energy
infrastructure assets. Rimrock is engaged in the business of
transporting, storing and custom blending crude oil in Oklahoma, Kansas,
Texas, North Dakota, Wyoming, Colorado, New Mexico and Utah. For more
information, visit www.rimrockmidstream.com.
Copyright Business Wire 2014