SemGroup, L.P., announced today that Front Range Pipeline, L.L.C.
will build a crude oil pipeline extending from Colorado's DJ Basin, an
area well-known for its oil and natural gas reserves, to Cushing,
Oklahoma. The pipeline is expected to be operational by January 2009.
"Front Range will build a 12-inch pipeline that is approximately
550 miles in length," said Kevin Foxx, SemGroup executive vice
president and chief operating officer. "The Front Range Pipeline will
originate near Platteville, Colorado, and terminate at SemCrude's
Cushing terminal."
SemCrude Pipeline, L.L.C., a wholly owned subsidiary of SemCrude,
L.P. which is SemGroup's crude oil business segment, is the majority
owner of Front Range Pipeline. Front Range Pipeline will build and
operate the system, while Kerr-McGee Oil & Gas Onshore, L.P. (a
subsidiary of Anadarko Petroleum Corporation (NYSE:APC)) and Noble
Energy, Inc. (NYSE:NBL) will be anchor shippers on the pipeline.
Foxx said, "Front Range will provide DJ Basin producers direct
access into the Cushing market and to refiners in the Mid-Continent
area. It will help producers have uninterrupted flow capacities and
receive maximum value for their crude oil."
SemCrude owns more than 4.3 million barrels of crude oil storage
in Cushing and has additional tanks under construction there. Cushing
is the site of the largest crude oil trading hub in the United States
and is the designated delivery point for New York Mercantile Exchange
crude oil futures contracts.
SemCrude, L.P. transports, gathers, stores and markets crude oil
in the United States. It owns 2,563 miles of pipeline and has almost 7
million barrels of storage. For additional information, visit
www.semcrude.com. SemGroup, L.P. is a privately held midstream company
providing the energy industry means to move products from the wellhead
to the wholesale marketplace. With assets in the United States,
Canada, Mexico, Wales (United Kingdom) and Switzerland, SemGroup's
business segments focus on activities related to crude oil, refined
petroleum products, natural gas, natural gas liquids and asphalt.
Based in Tulsa, Oklahoma, SemGroup is ranked in the top 10 of Forbes
magazine's list of America's Largest Private Companies. To learn more,
go to www.semgrouplp.com.