NGL Energy Partners LP Announces 2021 Open Season for Grand Mesa Pipeline Starting July 9, 2021
NGL Energy Partners LP (NYSE: NGL) announces a binding open season starting July 9, 2021, for its Grand Mesa Pipeline, which will conclude on August 9, 2021. The Grand Mesa pipeline, extending 550 miles from Weld County, Colorado, to Cushing, Oklahoma, has a capacity to transport up to 150,000 barrels per day. This initiative aims to re-contract available capacity that has recently opened due to shipper bankruptcies. The terms align closely with those from the 2016 open season. Interested parties can access the open season documents after executing a confidentiality agreement.
- Re-contracting available capacity on Grand Mesa pipeline due to recent shipper bankruptcies.
- Pipeline supports crude oil producers in the Denver-Julesburg Basin, providing access to key U.S. markets.
- Cost-effective and environmentally responsible transportation method reducing reliance on rail and truck.
- Recent shipper bankruptcies led to available capacity, indicating potential instability in demand.
NGL Energy Partners LP (NYSE: NGL) (“Partnership” or “NGL”) is pleased to announce that a binding open season will start today, July 9, 2021 at 8:00 am Central Daylight Time for its wholly owned affiliate Grand Mesa Pipeline, LLC’s (“Grand Mesa”) crude oil pipeline. This open season will close on August 9, 2021 at 5:00 pm Central Daylight Time.
Grand Mesa provides takeaway capacity for crude oil producers in the Denver-Julesburg Basin. It originates in Weld County, Colorado and extends approximately 550 miles southeast to NGL Crude Cushing, LLC’s storage terminal at Cushing, Oklahoma. The pipeline is capable of receiving and batch transporting up to 150,000 barrels per day for delivery into the Cushing hub, which affords its shippers access to both U.S. Midcontinent refining and trading markets as well as the Texas Gulf Coast refinery complex. The pipeline not only supports the continued growth and production in the area, but does so in a cost-effective and environmentally responsible way by reducing the current utilization of rail and truck transportation.
In 2016, NGL held an open season seeking commitments from shippers interested in shipping on Grand Mesa’s pipeline system. In response to the 2016 open season, Grand Mesa signed transportation service agreements with multiple shippers. Due to recent shipper bankruptcies and related contract terminations, committed capacity on Grand Mesa’s system has become available again. Accordingly, NGL is holding the current open season to re-contract available capacity on the Grand Mesa pipeline. The transportation services under this open season process are being offered pursuant to terms and conditions that are substantially similar to those applicable to the committed shippers that signed transportation service agreements in the 2016 open season, as specified in the open season documents.
Potential shippers will have access to the open season documents upon execution of a confidentiality agreement with Grand Mesa. The Confidentiality Agreement, and open season documents, can be obtained by contacting one of the contacts listed below.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware limited partnership is a diversified midstream energy company that transports, stores, markets and provides other logistic services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process. For further information visit the Partnership’s website at www.nglenergypartners.com.
Forward Looking Statements
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 such forward-looking statements are reasonable, NGL cannot assure they 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 public filings. 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.
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FAQ
What is the purpose of NGL's open season announced on July 9, 2021?
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When does NGL's open season for the Grand Mesa Pipeline end?
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