NGL Energy Partners to increase size of Grand Mesa Pipeline

NGL Energy Partners will increase the size of its Grand Mesa Pipeline to a higher capacity of 20 inch design.

The company’s decision was based on initial shipper commitments and further volumes committed to Rimrock Midstream’s under development 150-mile DJ Basin gathering system, which will tie into Grand Mesa pipeline at Lucerne, Colorado.

The larger pipeline has the capacity to transport more than 200,000 barrels per day.

The Grand Mesa Pipeline system will include more than 550 miles of new crude oil transportation pipeline, several truck injection bays, over one million barrels of operational storage.

It will feature around two origination points located near Lucerne and Kersey in Weld County, Colorado.

The system is expected to start services in the fourth quarter of 2016. Rimrock will build and operate the pipeline system.

In a separate release, NGL Energy Partners revealed that it has acquired Magnum NGLs from Magnum Development a portfolio company of Haddington Ventures, and other Haddington-sponsored investment entities.

Magnum owns and operates a natural gas liquids storage facility with several existing salt caverns and a potential capacity of over 10 million barrels.

The facility is located southwest of Salt Lake City, Utah with rail and truck access to Western US markets.

NGL owns and operates an energy business with five primary businesses that include water solutions, crude oil logistics, NGL logistics, refined products/renewables and retail propane.