Saddlehorn Pipeline Co. LLC announced Feb. 4 that Black Diamond Gathering LLC, through its majority owner Noble Midstream Partners LP, has purchased a 20 percent membership interest in Saddlehorn for $155 million effective Feb. 1. As previously announced, an option had been granted to Black Diamond in conjunction with recent volume commitments to the pipeline.
The Saddlehorn pipeline is currently capable of transporting 190,000 barrels per day (bpd) of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma. Supported by increased volume commitments from shippers, the pipeline’s capacity is being increased by 100,000 bpd to a new total capacity of approximately 290,000 bpd, providing shippers enhanced access to market. The higher capacity is expected to be available in late 2020 following the capital-efficient addition of incremental pumping and storage capabilities.
The Saddlehorn pipeline was previously owned jointly by affiliates of Magellan Midstream Partners LP, Plains All American Pipeline LP and Western Midstream Partners LP. After Black Diamond’s purchase, with Magellan and Plains each selling a 10 percent interest, Magellan and Plains each own a 30 percent membership interest and Black Diamond and WES each own a 20 percent membership interest in Saddlehorn. Magellan continues to serve as operator of the Saddlehorn pipeline.Tags: Black Diamond Gathering, Magellan Midstream, Noble Midstream, Plains All American Pipeline, Saddlehorn Pipeline, Western Midstream Partners