The Saddlehorn pipeline is an approximately 885 km pipeline that will transport various grades of crude oil from the DJ Basin in Colorado, US, and potentially the broader Rocky Mountain area resource plays, to storage facilities in Cushing, Oklahoma. An extension to Carr, Colorado, is also under consideration for connection to existing crude oil assets owned by Plains in that region.
“Magellan is pleased to work with Plains on the Saddlehorn pipeline,” said Magellan’s Chief Executive Officer Michael Mears.
“Aligning with Plains makes strategic sense due to their significant marketing and pipeline presence in this region, adding further value to the pipeline project to deliver crude oil to the Cushing hub.”
The project is currently estimated to cost between $US800-850 million. Magellan will serve as construction manager and pipeline operator. Subject to receipt of necessary permits and regulatory approvals, the Saddlehorn pipeline is expected to be operational during mid-2016.
The open season for the Saddlehorn pipeline received binding commitments from Noble Energy and a wholly owned subsidiary of Anadarko Petroleum Corporation. In addition, Anadarko has an option to participate in equity ownership up to 20 per cent in Saddlehorn Pipeline Company.