The owners of the Saddlehorn and Grand Mesa crude oil pipelines have decided to combine their projects. The 340,000-barrel-per-day joint interest pipeline will deliver DJ Basin crude from origin points in Colorado to storage facilities in Cushing, Oklahoma. Saddlehorn is owned by Magellan Midstream Partners, Plains All American Pipeline and Anadarko Petroleum Corp., and Grand Mesa is owned by NGL Energy Partners.
Magellan will serve as construction manager for the project. Saddlehorn expects to spend approximately $650 million for its share of the project, compared to a previous estimate of up to $950 million.
Installation of the segment between an origin point in Platteville, Colorado, and Cushing began last month, and it is expected to be operational in mid-2016. A segment from Carr, Colorado, to Platteville is expected to be operational in the fourth quarter of 2016.
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