Saddlehorn Pipeline Co. announced Monday the expansion of the Saddlehorn pipeline and a new Ft. Laramie, Wyoming origin point for the line, Kallanish Energy reports.
In connection with the expansion, Saddlehorn has launched a binding open season to solicit long-term commitments for capacity on the pipeline system. Interested customers must submit commitments no later than July 31.
The Saddlehorn line, which is jointly owned by affiliates of Magellan Midstream Partners, Plains All American Pipeline and Western Midstream Partners currently can flow roughly 190,000 barrels per day of 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 Saddlehorn pipeline.
The expansion will increase the pipeline’s capacity by up to 100,000 Bpd, to a new total capacity of 290,000 Bpd.
The additional capacity is expected to be available in late 2020, following the addition of incremental pumping and storage capabilities. Saddlehorn will add the new Ft. Laramie origin by leasing capacity on third-party pipelines.
This post appeared first on Kallanish Energy News.