NGL Energy Partners has acquired Rimrock Midstream’s 50% stake in Grand Mesa Pipeline.
Rimrock Midstream will construct the system, which will include more than 550 miles of new crude oil transportation pipeline.
The system will also feature several truck injection bays, more than 1 million barrels of operational storage, and around two origination points located near Lucerne and Kersey (Riverside Station) in Weld County, Colorado.
The system, which is in active development, is expected to start services in the fourth quarter of 2016.
The acquisition expands NGL’s midstream business with the addition of significant fee based revenue supported by long term contracts.
It will help further develop the DJ and Wattenberg fields and offer additional options to transport crude oil to US markets as well as refineries in the Midwest.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataNGL said it will have ownership in two long haul crude oil pipelines that terminate into its Cushing terminal facility.
A significant portion of the committed crude oil volumes will be tied to Grand Mesa through gathering systems.
Rimrock Midstream chief financial officer Matt Valentine said: "The sale of our interest in Grand Mesa, the construction and operations agreements with Grand Mesa and our development of the Platte River gathering system greatly strengthen our financial and strategic position as a midstream growth company."
Rimrock Midstream was established to acquire, develop and operate a portfolio of midstream energy infrastructure assets.
The company has been engaged in the business of acquiring, transporting and storing crude oil in Oklahoma, Kansas, Texas, North Dakota, Wyoming, Colorado, New Mexico and Utah.
