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SemGroup and DCP Midstream Announce Open Season for Light Crude Transportation Solution from Cushing to Gulf Coast Markets
TULSA, Okla. and DENVER, Dec. 03, 2018 (GLOBE NEWSWIRE) -- SemGroup® Corporation (NYSE:SEMG) and DCP Midstream, LP (NYSE:DCP) are pleased to announce the commencement of an open season process to solicit binding commitments for the development of a new pipeline system to transport segregated, light batches of crude oil originating in Cushing, Okla. and terminating in Houston, Texas. All potential shippers must submit binding commitments by 5 p.m. Central Time on January 31, 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.
“We look forward to offering our DJ Basin customers an additional outlet for neat crude oil service out of the Cushing market with SemGroup,” said Don Baldridge, President of Commercial for DCP Midstream. “This opportunity allows us to potentially leverage a part of our Southern Hills’ existing pipeline for our DJ and Mid-continent producers’ benefit, while continuing to grow our NGL capacity in the region through additional Southern Hills pipeline looping projects.”
“We are excited to work with DCP to integrate this pipeline into our existing transportation and storage footprint and offer customers seamless connectivity from the Rockies and Mid-Continent to a vast network of marketing options including our Gulf Coast HFOTCO terminal,” said David Minielly, Vice President of SemGroup’s crude operations. “Our ability to deliver neat light batches from Cushing to Houston provides shippers an advantage.”
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 may be operational by the third quarter of 2020, following the potential construction of new NGL capacity by DCP.
Prospective shippers should contact Grant Najera, Director of Commercial - Pipelines for SemGroup, at 918-524-8525 or firstname.lastname@example.org, and Nick Dark, Commercial Asset Manager for SemGroup at 918-524-7311 or email@example.com. At DCP Midstream, potential shippers should contact Brittany Wright, Business Development Manager, at 713-735-3657 or firstname.lastname@example.org.
Click here for a map of the proposed Gladiator Pipeline and its interconnectivity.
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About DCP Midstream, LP
All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include the risk factors discussed from time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
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