The Saddlehorn Pipeline system which will run from Platteville, Wisconsin to Cushing, Oklahoma, will extend to Carr in Colorado.
The Saddlehorn Pipeline Company announced that the 50-mile pipeline extension from Platteville to Carr, which is anticipated to be constructed with a 16-inch diameter pipe, and will provide a connection to existing crude oil assets in that region.
Saddlehorn will construct, own and operate the approximately 600-mile pipeline, which includes the Carr extension. The pipeline will transport various grade of crude oil from the DJ Basin, and potentially the broader Rocky Mountain and Bakken area resource plays, to storage facilities in Cushing, Oklahoma owned by Magellan Midstream Partners and Plains All American Pipeline.
The 20-inch pipeline from Platteville to Cushing ultimately has the capacity to transport up to 400,000 barrels per day, with the initial capacity expected to be closer to 200,000 barrels per day.
The Carr extension project is currently estimated to cost between $80 million (€72 million) and $100 million (€90 million). Magellan will serve as construction manager and operator of the Saddlehorn Pipeline system. Subject to the necessary permits and regulations receiving approval, the Platteville to Cushing pipeline is expected to be operational mid-2016 and the extension to Carr is expected to be in service by the end of 2016.