NGL Energy Partners, LP Acquires Rimrock Midstream LLC’s Interest in Grand Mesa Pipeline, LLC

abarrelfullabarrelfull wrote on 02 Dec 2014 08:37
Tags: n-america ngl pipeline usa

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NGL Energy Partners, LP (NYSE:NGL) is pleased to announce that it has executed a definitive membership interest purchase agreement with Rimrock Midstream, LLC (“Rimrock”) for Rimrock’s 50% interest in Grand Mesa Pipeline, LLC. NGL now owns 100% of the pipeline system.

Grand Mesa Pipeline, LLC completed a successful open season on October 3, 2014, securing multiple significant long-term shipper commitments. The system will include over 550 miles of new crude oil transportation pipeline, multiple truck injection bays, over 1.0 million barrels of operational storage, and at least two origination points located near Lucerne and Kersey (Riverside Station) in Weld County, Colorado. The system is in active development and is scheduled to commence service in Q4 2016. Rimrock will construct and operate the pipeline system.

The acquisition further strengthens NGL’s diversified midstream business, adding significant fee based revenue backed by long term contracts. The Grand Mesa Pipeline will help further develop the crude and condensate rich DJ and Wattenberg fields and provide additional options for transporting crude oil to U.S. markets and refineries in the Midwest, including the NYMEX designated hub of Cushing, Oklahoma. NGL will have ownership in two long haul crude oil pipelines that terminate into NGL’s Cushing Terminal Facility which provides additional revenue opportunities for NGL, its shippers and refinery customers. A significant portion of the committed crude oil volumes will be tied to Grand Mesa via gathering systems, reducing the need for trucked volumes.

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