Magellan Midstream Partners, L.P. has launched an open season to assess customer interest to transport various grades of crude oil from the Niobrara shale to the partnershipís storage facilities in Cushing, Oklahoma. Magellan is in discussions with two major producers who have expressed interest in committing to the project, and Magellan intends to proceed with the project if commitments are received at currently negotiated levels from these producers. All potential customers will have an equal opportunity to obtain capacity in the open season and must submit binding commitments by 5:00 p.m. Central Time on Oct. 22, 2014.
The proposed Saddlehorn Pipeline includes construction of an approximate 600-mile, 20-inch diameter pipeline capable of transporting up to 400,000 barrels per day of crude oil from Platteville, Colorado to Magellanís storage facilities in Cushing. Magellan expects to use its existing right-of-way for a significant portion of the pipeline route.
Subject to sufficient commitments from shippers and receipt of any necessary permits and regulatory approvals, the Saddlehorn Pipeline could be operational during the second quarter of 2016.