Saddlehorn Pipeline to add new origin at Carr, Colorado

Saddlehorn Pipeline Co. LLC says that the Saddlehorn Pipeline system will extend to Carr, Colorado. The 50-mile pipeline extension from Platteville, Colorado, to Carr, which is to be constructed with 16-inch-diameter pipe, will provide a connection to existing crude oil assets in that region. This extension has been designed to provide shippers with more options and access into the Saddlehorn Pipeline system.  

Saddlehorn is a limited liability company owned by Magellan Midstream Partners LP (NYSE: MMP), Plains All American Pipeline LP (NYSE: PAA), and Anadarko Petroleum Corp. (NYSE: APC). Saddlehorn will construct, own, and operate the 600-mile pipeline (including the Carr extension), which will transport various grades of crude oil from the Denver-Julesburg Basin, and potentially the broader Rocky Mountain and Bakken area resource plays, to storage facilities in Cushing, Oklahoma, owned by Magellan and Plains. The 20-inch pipeline from Platteville to Cushing ultimately has the capacity to transport up to 400,000 barrels per day (bpd), with the initial capacity expected to be closer to 200,000 bpd.  

The Carr extension project is estimated to cost between $80 million and $100 million. Magellan will serve as construction manager and operator of the Saddlehorn Pipeline system. Subject to receipt of necessary permits and regulatory approvals, the Platteville to Cushing pipeline is expected to be operational during mid-2016, and the extension to Carr is anticipated to be in service by the end of 2016.  

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