Magellan Midstream Partners, L.P. has announced an extension of the open season for commitments on the Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara play in northeast Colorado to Magellan's storage facilities in Cushing, Oklahoma. Binding commitments are now due by 27 February 2015.
The Saddlehorn Pipeline includes construction of an approximate 600 mile, 20 in. diameter pipeline capable of transporting up to 400 000 bpd of crude oil from Platteville, Colorado, to Magellan's storage facilities in Cushing. Subject to sufficient support, Magellan could also add more origin points.
Magellan is currently in the process of obtaining permits and right-of-way and has secured an 80 acre tract of land to serve as the Platteville origin. Subject to receipt of necessary permits and regulatory approvals, the Saddlehorn Pipeline from Platteville to Cushing is expected to be operational during the second quarter of 2016.
As previously announced, Magellan has received binding commitments from a wholly owned subsidiary of Anadarko Petroleum Corporation and Noble Energy, Inc. In addition, Magellan has entered into letters of intent with potential equity owners in Saddlehorn Pipeline and is in advanced discussions with an additional strategic party for possible equity ownership in the project. Magellan expects to serve as construction manager and operator of Saddlehorn Pipeline. The project scope, cost and ownership structure of the Saddlehorn Pipeline will be finalised after the open season closes and the total committed volumes are known.
Adapted from press release by Rosalie Starling