Saddlehorn Pipeline Company LLC on Thursday announced an expansion of the Saddlehorn Pipeline by 100,000 barrels per day, to 290,000 Bpd, Kallanish Energy reports.

The announced capacity expansion follows a successful open season during July and subsequent increased volume commitments from shippers.

The higher capacity is expected to be available in late 2020 following the addition of incremental pumping and storage capabilities.

The Saddlehorn line, jointly owned by affiliates of Magellan Midstream Partners, Plains All American Pipeline, and Western Midstream Partners, flows crude oil and condensate from the DJ and Powder River basins to storage facilities in Cushing, Oklahoma, owned by Magellan and Plains. Magellan operates the pipeline.

Noble Midstream Partners LP and Greenfield Midstream LLC, which own the joint-venture entity Black Diamond Gathering LLC announced Black Diamond and Noble Midstream sponsor Noble Energy made commitments during Saddlehorn’s recent open season. Black Diamond’s investment option expires in April 2020.

Upon an option exercise by Black Diamond, Magellan and Plains would each sell-down their equity interests in the Saddlehorn line to Black Diamond on an equal 10% basis, while Western Midstream would retain its 20% equity ownership.

“Saddlehorn is an important long-haul outlet from the DJ and Powder River basins, with premier midstream equity partners and commitments from high-quality producers,” said Noble Midstream CEO Brent Smolik.

This post appeared first on Kallanish Energy News.