SemGroup to build DJ basin crude gathering system

SemGroup Corp. plans to build an oil gathering system in the Denver-Julesburg basin in Colorado. The 37-mile, 12-in. OD Wattenberg Oil Trunkline, will transport oil within the DJ basin.

The project will include a 37-mile, 12-in. pipeline system extending between Noble Energy Inc. processing facilities and Rose Rock Midstream’s Platteville Station, the starting point of White Cliffs Pipeline. SemGroup last year contracted to add 1.95 million bbl of storage at Cushing, Okla., to handle expanded flows from the DJ basin on White Cliffs Pipeline (OGJ Online, Apr. 4, 2011).

Wattenberg also will include 200,000 bbl of storage and facilities to unload trucks. SemGroup expects Wattenberg to enter service third-quarter 2013, supported by a long-term shipping agreement with Noble.

SemGroup and Chesapeake agreed in February to build a 210-mile crude in Oklahoma, also expected to enter service during third-quarter 2013 (OGJ Online, Feb. 21, 2012).

Contact Christopher E. Smith at chriss@ogjonline.com.

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