NGL Energy Partners LP Announces the Commencement of Line Fill for Grand Mesa Pipeline; Commercial Operations to begin November 1, 2016
NGL Energy Partners LP (NYSE:NGL) announced today that its subsidiary,
Grand Mesa Pipeline, LLC (“Grand Mesa”) has commenced line fill for its
newly-constructed crude oil pipeline system from Weld County, Colorado
to Cushing, Oklahoma. The pipeline is on schedule to be in commercial
service on November 1, 2016. Construction of the Lucerne and Riverside
origin stations in Colorado and the connection to the mainline pipeline
is complete and expected to be approximately $18.0 million under budget.
“Our Grand Mesa pipeline project is on-time, under budget and ready for
commercial operations on November 1, 2016. We filed our tariff last
week, and the commissioning of our assets and initial crude oil receipts
began this week. We believe the start-up of this project, and our
long-term, fee-based contracts with many of the best operators in the DJ
Basin, serves as a major milestone in the growth of our Partnership,”
stated Mike Krimbill, CEO of NGL. “We believe we have delivered an
innovative, cost competitive, long-term solution to the operators in the
DJ Basin and we look forward to working with our producer and shipper
customers for many years to come.”
The Grand Mesa Pipeline system includes an undivided joint ownership
interest with Saddlehorn Pipeline Company, LLC in a newly constructed
20-inch crude oil transportation pipeline. The initial capacity of the
pipeline is 340,000 barrels per day, of which Grand Mesa owns 150,000
barrels per day. The Saddlehorn portion of the pipeline became
operational in August 2016. Additionally, NGL wholly owns the pipeline
from its origin points into the mainline, multiple truck injection bays,
over one million barrels of operational storage, and two collection
points located near Lucerne and Kersey (Riverside Station) in Weld
County, Colorado. Grand Mesa delivers crude oil to the destination point
at NGL’s 4.6 million barrel storage terminal in Cushing, Oklahoma.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and
operates a vertically integrated energy business with five primary
businesses: water solutions, crude oil logistics, NGL logistics, refined
products/renewables and retail propane. For further information, visit
the Partnership’s website at www.nglenergypartners.com.
This press release includes “forward-looking statements.” All statements
other than statements of historical facts included or incorporated
herein may constitute forward-looking statements. Actual results could
vary significantly from those expressed or implied in such statements
and are subject to a number of risks and uncertainties. While NGL
believes its expectations as reflected in the forward-looking statements
are reasonable, NGL can give no assurance that such expectations will
prove to be correct. The forward-looking statements involve risks and
uncertainties that affect operations, financial performance, and other
factors as discussed in filings with the Securities and Exchange
Commission. Other factors that could impact any forward-looking
statements are those risks described in NGL’s annual report on Form
10-K, quarterly reports on Form 10-Q, and other filings with
the Securities and Exchange Commission. You are urged to carefully
review and consider the cautionary statements and other disclosures made
in those filings, specifically those under the heading “Risk Factors.”
NGL undertakes no obligation to publicly update or revise any
forward-looking statements except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161004006586/en/
Copyright Business Wire 2016
Source: Business Wire
(October 4, 2016 - 5:00 PM EDT)
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