NGL Energy Partners and Rimrock Midstream have formed a joint venture to build a crude oil pipeline with initial capacity exceeding 130,000 barrels per day originating in Weld County, Colo., and terminating at NGL’s Cushing, Okla., terminal.
The companies held a binding open season that started on Sept. 15 and ended on Oct. 3. The construction of the Weld County pipeline project will help develop the crude and condensate rich areas in and around the DJ and Wattenberg fields and provide additional options to transport oil supplies to U.S. markets and refineries in the Midwest, including several interconnected to the NYMEX designated hub of Cushing.
The companies expect the pipeline to support the continued growth and production in the area in a cost effective and environmentally responsible way by reducing the current use of rail and truck transportation while providing jobs and supporting the local economies.
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