Black Diamond takes interest in Saddlehorn oil pipeline for $155 million
An option had previously been granted to Black Diamond in conjunction with recent volume commitments to the pipeline, the company added.
The Saddlehorn pipeline is currently able to transport 190,000 barrels per day (bpd) of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma. Supported by increased volume commitments from shippers, the pipeline's capacity is being increased to a new total capacity of approximately 290,000 bpd, providing shippers enhanced access to market.
The higher capacity is expected to be available later this year, following the capital-efficient addition of incremental pumping and storage capabilities.
The Saddlehorn pipeline was previously owned by affiliates of Magellan Midstream Partners, Plains All American Pipeline and Western Midstream Partners.
Following the purchase by Black Diamond, with Magellan and Plains each selling a 10% interest, Magellan and Plains each own a 30% membership interest and Black Diamond and Western Midstream each own a 20% membership interest in the pipeline.
Magellan will continue to act as operator of the Saddlehorn pipeline.