TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE:NGL) announced today that its subsidiary, Grand Mesa Pipeline, LLC (“Grand Mesa”) has commenced line fill for its newly-constructed crude oil pipeline system from Weld County, Colorado to Cushing, Oklahoma. The pipeline is on schedule to be in commercial service on November 1, 2016. Construction of the Lucerne and Riverside origin stations in Colorado and the connection to the mainline pipeline is complete and expected to be approximately $18.0 million under budget.
“Our Grand Mesa pipeline project is on-time, under budget and ready for commercial operations on November 1, 2016. We filed our tariff last week, and the commissioning of our assets and initial crude oil receipts began this week. We believe the start-up of this project, and our long-term, fee-based contracts with many of the best operators in the DJ Basin, serves as a major milestone in the growth of our Partnership,” stated Mike Krimbill, CEO of NGL. “We believe we have delivered an innovative, cost competitive, long-term solution to the operators in the DJ Basin and we look forward to working with our producer and shipper customers for many years to come.”
The Grand Mesa Pipeline system includes an undivided joint ownership interest with Saddlehorn Pipeline Company, LLC in a newly constructed 20-inch crude oil transportation pipeline. The initial capacity of the pipeline is 340,000 barrels per day, of which Grand Mesa owns 150,000 barrels per day. The Saddlehorn portion of the pipeline became operational in August 2016. Additionally, NGL wholly owns the pipeline from its origin points into the mainline, multiple truck injection bays, over one million barrels of operational storage, and two collection points located near Lucerne and Kersey (Riverside Station) in Weld County, Colorado. Grand Mesa delivers crude oil to the destination point at NGL’s 4.6 million barrel storage terminal in Cushing, Oklahoma.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with five primary businesses: water solutions, crude oil logistics, NGL logistics, refined products/renewables and retail propane. For further information, visit the Partnership’s website at www.nglenergypartners.com.
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 its expectations as reflected in the forward-looking statements are reasonable, NGL can give no assurance that such expectations 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 filings with the Securities and Exchange Commission. 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.