SemGroup Energy Partners Buys Eagle North Pipeline
Posted on: Tuesday, 13 May 2008, 09:00 CDT
By Jason Womack, Tulsa World, Okla.
May 13--SemGroup Energy Partners LP announced Monday that it has purchased the Eagle North Pipeline System from a subsidiary of SemGroup LP for $45 million.
The partnership plans to invest an additional $3.5 million to convert that 130-mile refined products line into a crude oil conduit. It also will extend the line into the Cushing interchange, an oil hub located about 50 miles from Tulsa.
The 10-mile, 6-inch diameter extension is scheduled to begin operation in the first quarter of 2009.
"This expansion of SGLP's asset base will provide an important link for crude oil producers into the Cushing interchange," Kevin Foxx, president and CEO of SemGroup Energy Partners, said in a prepared statement.
SemGroup Energy Partners operates 4.8 million barrels of storage in Cushing, which is the delivery point for oil traded on the New York Mercantile Exchange.
The Eagle North Pipeline System was part of an 8-inch diameter line connecting Arlington, Texas, to Drumright.
The SemGoup LP subsidiary, SemCrude, purchased the 130-mile portion extending from Ardmore to Drumright in March.
The pipeline has a capacity of 16,000 barrels per day and will serve southern Oklahoma
producers, the company said..
SemGroup Energy Partners LP is a publicly traded partnership. The privately held, Tulsa-based energy company SemGroup LP indirectly owns the general partner interest in the company through a subsidiary.
Jason Womack 581-8380 jason.womack@tulsaworld.com
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Source: Tulsa World
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