Magellan Midstream Partners LP (NYSE: MMP) reports an extension of the open season for commitments on the Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara shale play in northeast Colorado to Magellan's storage facilities in Cushing, Oklahoma. Binding commitments are now due by 5 p.m. Central Time on Dec. 15.
The Saddlehorn Pipeline includes construction of a 600-mile, 20-inch-diameter pipeline capable of transporting up to 400,000 barrels per day of crude oil from Platteville, Colorado, to Magellan's storage facilities in Cushing. Magellan is also broadening the scope of the pipeline system to include up to three new origin points for receipt of crude oil, subject to sufficient shipper support for the new origins. Along with Platteville, additional origin points in Colorado could be available in Weld County near Riverside, Briggsdale, and Pawnee.
Subject to receipt of any necessary permits and regulatory approvals, the Saddlehorn Pipeline from Platteville to Cushing is expected to be operational during the second quarter of 2016.
Magellan has received binding commitments from a wholly owned subsidiary of Anadarko Petroleum Corp. and Noble Energy Inc. In addition, Magellan has entered into letters of intent with Anadarko and Saddle Butte Pipeline II LLC for potential equity ownership in Saddlehorn Pipeline.
The project scope, cost and ownership structure of the Saddlehorn Pipeline will be finalized after the open season closes and the total committed volumes are known.