Open Season Extended for Pipeline Bids

Open Season Extended for Pipeline Bids

  • Magellan Midstream Partners, L.P., Navigator Energy Services, SemGroup® Corporation, and DCP Midstream, LP, have extended bidding season.
  • The announcements impact the Voyager and Gladiator pipelines, both starting in Oklahoma and ending in Texas.

Magellan Midstream Partners, L.P., and Navigator Energy Services have announced an extension of the open season to solicit commitments from shippers for the potential new Voyager pipeline to transport various grades of light crude oil and condensate from Cushing, Oklahoma, to Houston, Texas.

SemGroup® Corporation and DCP Midstream, LP, have announced that they have also extended by one month the open season to solicit binding commitments for the development of a new pipeline system to transport segregated, light batches of crude oil originating in Cushing, Oklahoma, and terminating in Houston, Texas.

For SemGroup® Corporation and DCP Midstream, LP, all potential shippers must submit binding commitments by 5 PM Central Time on 28 February 2019.

  • The proposed Gladiator Pipeline would originate at SemGroup’s Cushing terminal and provide crude oil service to Gulf Coast markets. The Cushing origin would provide potential shippers the connectivity to source barrels from key pipelines that converge in Cushing, including the White Cliffs Pipeline, which serves Colorado’s DJ Basin.
  • At the pipeline’s destination, potential shippers would have many options for connecting barrels to a variety of demand centers, including refineries in the Houston area, or to crude oil storage and export facilities, such as SemGroup’s HFOTCO Terminal.
  • If sufficient commitments are obtained, subject to the receipt of all of the necessary approvals, permits, and force majeure, the proposed Gladiator Pipeline is anticipated to be operational by the 3Q20, following the potential construction of new NGL capacity by DCP.

For Magellan Midstream Partners, L.P., and Navigator Energy Services, binding commitments are now due by 12 PM Central Time on 29 March 2019. Significant interest has been expressed from potential shippers, particularly those reaching Voyager from connecting carriers. The extension provides these potential shippers additional time to finalize their commitments across multiple pipelines.

  • The proposed Voyager pipeline would include construction of nearly 500 miles of 20-in. or 24-in. diameter pipeline from Magellan’s terminal in Cushing to Magellan’s terminal in East Houston.
  • At the origin, the Voyager pipeline would provide shippers the option to originate deliveries at Cushing from the Magellan-operated Saddlehorn pipeline serving the Rockies and Bakken production regions and Navigator’s Glass Mountain pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub.
  • At the destination, Magellan’s comprehensive Houston crude oil distribution system could further deliver the product to all refineries in the Houston and Texas City area or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.
  • The potential pipeline system is expected to have an initial capacity of at least 300,000 bpd with the ability to expand further if warranted by industry demand. Subject to receipt of sufficient customer commitments and all necessary permits and approvals, the proposed pipeline is planned to be operational in late 2020.

To keep up on pipeline related news, check the Submar blog regularly.