SemGroup, DCP seeking commitments for new pipeline
SemGroup Corp. and DCP Midstream are seeking binding commitments from shippers for a new pipeline system to transport crude oil from Cushing, Okla., to Houston, Texas.
All interested parties must submit binding commitments by 5 p.m. Central Time on Jan. 31, 2019.
The proposed Gladiator Pipeline would provide crude oil service to Gulf Coast markets from SemGroup’s Cushing Terminal. The Cushing origin would give shippers a connection to other pipelines that converge in Cushing, including the White Cliffs Pipeline, which serves Colorado.
“We look forward to offering our DJ Basin customers an additional outlet for neat crude oil service out of the Cushing market with SemGroup,” Don Baldridge, president of commercial for DCP Midstream, said. “This opportunity allows us to potentially leverage a part of our Southern Hills’ existing pipeline for our DJ and Mid-continent producers’ benefit while continuing to grow our NGL capacity in the region through additional Southern Hills pipeline looping projects.”
The proposed Gladiator Pipeline is expected to be operational by the third quarter of 2020.
“We are excited to work with DCP to integrate this pipeline into our existing transportation and storage footprint and offer customers seamless connectivity from the Rockies and Mid-Continent to a vast network of marketing options including our Gulf Coast HFOTCO terminal,” David Minielly, vice president of SemGroup’s crude operations, said. “Our ability to deliver neat light batches from Cushing to Houston provides shippers an advantage.”
