Magellan Midstream assesses interest in pipeline from Niobrara to Cushing
Magellan Midstream Partners has begun an open season to assess customer interest in its proposed 400,000-barrel-a-day Saddlehorn Pipeline from the Niobrara shale in Colorado, Wyoming and Nebraska to storage facilities in Cushing, Oklahoma.
Magellan is in discussions with two major producers who have expressed interest in committing to the project, according to a statement on Tuesday. Magellan intends to proceed with the project if commitments are received at currently negotiated levels from these producers.
The pipeline would be the latest to bring crude from burgeoning shale formations to the Cushing storage hub, where benchmark WTI crude is priced.
Commitments are being accepted until Oct. 22.
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