NGL Energy Partners LP plans to increase the size of its Grand Mesa Pipeline to a higher capacity 20-in. design.
The decision to expand was based on initial shipper commitments and additional volumes committed to Rimrock Midstream LLC’s 150-mile DJ Basin gathering system that is currently under development and will tie into Grand Mesa Pipeline at Lucerne, Colorado, according to a Feb. 18 company statement.
The larger pipeline provides area producers a reliable and cost effective takeaway option, capable of transporting more than 200,000 barrels per day (bpd). Original plans called for an initial capacity of 130,000 bpd, according to reports.
The Grand Mesa Pipeline system will include more than 550 miles of new crude oil transportation pipeline, multiple truck injection bays, more than 1 million barrels of operational storage and at least two origination points located near Lucerne and Kersey (Riverside Station) in Weld County, Colorado. The system is in active development and is scheduled to commence service in the fourth quarter 2016. Rimrock will construct and operate the pipeline system.
In October 2014, NGL Energy and Rimrock (then a 50 percent owner) announced a successful open season for the Grand Mesa project. In December, NGL Energy acquired Rimrock’s interest in the pipeline to become 100 percent owner.