NGL Energy Partners LP (NYSE:NGL) and Rimrock Midstream LLC report 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 begin construction of the pipeline system to accommodate the committed volumes. Pipeline operations are anticipated to begin service in 2016.
The GMP system will include 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 Denver-Julesburg and Wattenberg fields and provide additional options transporting oil supplies to US markets and refineries in the Midwest, including several interconnected to the NYMEX designated hub of Cushing, Oklahoma.