SemGroup Corporation and Noble Energy Agree to Build New Wattenberg Crude Oil Gathering System

abarrelfullabarrelfull wrote on 17 May 2012 07:56
Tags: n-america noble pipeline semgroup usa

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SemGroup® Corporation (NYSE:SEMG) today announced plans to construct a new crude oil gathering system in the Denver-Julesburg Basin (DJ Basin) in Colorado. The project will support Noble Energy, Inc.'s (NYSE: NBL) efforts to move their production away from the wellhead.

"Demand continues to increase for midstream services out of the DJ Basin," said Pete Schwiering, vice president of SemGroup Corporation. "Strong crude prices provide attractive economics for producers in this play and we are excited to be working with Noble Energy to accommodate the increased production."

Once operational, the new gathering system, to be called the Wattenberg Oil Trunkline, will transport oil within the DJ Basin. The project will include a 37 mile, 12 inch pipeline system with 200,000 barrels of operational storage extending north from Rose Rock Midstream's (NYSE: RRMS) Platteville Station, the origin point of White Cliffs Pipeline. The Wattenberg Oil Trunkline will connect to Noble Energy processing facilities in the heart of their producing areas and include facilities to unload trucks.

Noble Energy, Inc. has entered into a long term agreement to use the asset. The project is expected be operational the third quarter of 2013.

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