Tulsa-based SemGroup Corporation and NGL Energy Partners LP announced Monday that it will construct a 44-mile pipeline extension via its joint venture, Glass Mountain Pipeline, LLC. The Glass Mountain Pipeline extension will deliver crude oil from the STACK to Cushing, Oklahoma, according to the press release.
“We’re excited about this opportunity to enter the STACK,” said David Minielly, vice president of SemGroup’s crude operations. “It’s a continuously growing area with strong economics for producers. We believe in the play and are happy to offer a new midstream option to meet producer demands.”
The current pipeline is 215 miles long and delivers crude oil from the Mississippi Lime and Granite Wash plays to the supply hub at Cushing.
“The STACK extension will provide local producers with a cost-effective and reliable transportation solution from the core of the STACK to Glass Mountain’s storage facilities in Cushing, which enable further delivery to refineries and the Gulf Coast,” said Don Robinson, executive vice president of NGL’s crude operations. “The extension will tie-in to the existing Glass Mountain mainline facilitating a shortened construction timeline.”
Glass Mountain Pipeline has entered into a long-term, fee-based transportation agreement with a large investment grade producer in the STACK play that includes a committed area of dedication.
Pending regulatory and permit approval, the extension is expected to be finalized by the fourth quarter of 2017.