SemCrude L.P., a subsidiary of SemGroup Corporation (NYSE: SEMG), announced that through a contract with Matrix Services Co., the company will build 1.95 million barrels of additional crude oil storage at its Cushing, OK terminal.
The project will include seven 250,000 barrel crude oil tanks and two 100,000 barrel crude oil tanks. Upon completion, SemCrude’s total storage capacity in Cushing will be seven million barrels of crude oil. The new tanks will be leased to three customers and is expected to be completed mid-year 2012. Carl Karner will be the project manager for SemCrude.
“Despite all the newly constructed tanks in Cushing a significant demand continues for additional storage,” said Pete Schwiering, president of SemCrude. “This demand is enhanced by increased deliveries of Canadian crude and the pending expansion of White Cliffs Pipeline.”
Cushing is the site at which White Cliffs Pipeline terminates. Owned and operated by SemCrude, White Cliffs Pipeline is the only pipeline that moves crude oil out of the Denver-Julesburg Basin directly to Cushing.