Glass Mountain Pipeline LLC formed to build pipeline in Oklahoma

17 May 2012

SemGroup Corporation, Chesapeake Energy Corporation, and Gavilon LLC have formed Glass Mountain Pipeline LLC to build a 210-mile crude oil pipeline in Oklahoma.

Construction of the pipeline is expected to begin in mid-2012 with commissioning expected in the second half of 2013. The new pipeline will be constructed by SemGroup. It will have an initial capacity of about 140,000 barrels per day and 440,000 barrels of intermediate storage.

The pipeline will consist of two laterals, the first of which will originate near Alva in Woods County and the second of which will start near Arnett in Ellis County. The diameter of the pipeline will increase at the intersection point of the laterals near Cleo Springs in Major County following which it will continue east to its termination point at Gavilon's Cushing facility.

At this facility, 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.

Chesapeake Energy has entered into a long-term transportation agreement with Glass Mountain Pipeline to provide economic incentive to construct the pipeline.