Wednesday, December 2, 2015

Pipeline to connect Colorado’s DJ Basin to Cushing storage hub


Saddlehorn Pipeline Company is combining projects with Grand Mesa Pipeline to construct a pipeline to deliver various grades of crude from the DJ Basin to Cushing, Oklahoma.

The joint interested, 20-inch pipeline will begin 20 miles north of Saddlehorn's Platteville, Colorado origin at a junction near Grand Mesa's Lucerne, Colorado origin.

The initial capacity of the pipeline is expected to be 340,000 barrels per day, with Saddlehorn owning 190,000 barrels per day of capacity and Grand Mesa owning the remaining 150,000.

Saddlehorn has the option to expand the maximum capacity of the pipeline to more than 450,000 bpd in the future at its own discretion and cost.

Saddlehorn will own origin points at Platteville, including one million barrels of storage, and Carr, Colorado as well as the pipeline segment from Carr to the Lucerne junction. Grand Mesa will own origin points both at Lucerne and Riverside, Colorado as well as the pipeline segment between Lucerne and Riverside.

Pipeline installation began in October for the Platteville to Cushing segment of the pipeline, which is expected to be operation during mid-2016.

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