SemGroup and Gavilon each acquire a 25% stake in Glass Mountain Pipeline

SemGroup and Gavilon have each acquired a 25% stake in Glass Mountain Pipeline which was previously owned by an affiliate of Chesapeake Energy.

After the deal SemGroup Corporation now owns 50% of Glass Mountain Pipeline while Gavilon owns the remaining 50%.

Chesapeake is expected to maintain its long-term transportation agreement with Glass Mountain Pipeline.

The Glass Mountain Pipeline is expected to have an initial capacity of approximately 140,000 barrels per day and 440,000 barrels of intermediate storage.

It will consist of two laterals; the first lateral will originate near the town of Alva in Woods County, Oklahoma, and the second lateral will originate near the town of Arnett in Ellis County, Oklahoma.

The company said the laterals intersect near Cleo Springs in Major County, Oklahoma the pipeline will increase in diameter and will continue east to Cushing, Oklahoma.

It will terminate at Gavilon’s Cushing facility, where the joint venture will own one million barrels of crude oil storage.

Rose Rock Midstream, SemGroup’s master limited partnership, will serve as the pipeline operator following pipeline construction.