Saddlehorn Oil Pipeline Moving Forward
The planned Saddlehorn pipeline, running between the Niobrara play and Oklahoma, is a “go” according to Magellan Midstream. This announcement comes on the heels of commitments made by subsidies of Anadarko Petroleum and Noble Energy. The proposed line will carry various qualities of crude oil from Northeast Colorado straight to Magellan’s facilities in Cushing. These developments are important to finally realizing a timely and efficient pipeline between the Niobrara play, and the Oklahoma hub.
The commitments made by Anadrako and Noble come thanks to an extended open season, as well as a revised tariff rate structure. This made the future pipeline a much more viable and attractive option to partners, and provided new opportunities for equity in the pipeline.
The 600-mile project will be able to deliver up to 400,000 barrels per day of crude oil from its genesis in Platteville, all the way to Magellan’s Cushing-based storage areas. Although the expected cost, scope, and even ownership of the pipeline is still being finalized, the Saddlehorn is on track to become operational by the second quarter of 2016. Open season continues however, so more potential customers and partners are encouraged to contact Magellan if interested.