Genesis Energy, L.P. Announces New Powder River Basin Acreage Dedications & Open Season for New Crude Oil Gathering Services ...
27 November 2017 - 12:30PM
Business Wire
Genesis Energy, L.P. (NYSE:GEL) announced today it has launched
a binding open season to secure long-term commitments to support a
new gathering system (the “Gathering System”) to connect crude oil
production to its existing Powder River basin pipeline (the “Powder
River Basin Pipeline”). The Powder River Basin Pipeline, which is
wholly owned and operated by subsidiaries of Genesis, provides
producers in Wyoming’s emerging Powder River basin access to
multiple attractive markets, including additional downstream
markets at Guernsey, Wyoming, regional refineries and/or west, east
and gulf coast markets via the Pronghorn Rail loading terminal
directly connected to both the Union Pacific and BNSF
railroads.
The Gathering System is supported by a new contract with one of
the leading operators in the Powder River basin. The operator will
dedicate approximately 150,000 acres to the Gathering System and
the Powder River Basin Pipeline for a period of ten years.
Additionally, the operator has extended the term of its existing
contracts, in which it previously dedicated approximately 150,000
acres to the Powder River Basin Pipeline, for a period of ten
years. Production from the previously dedicated acreage is
currently gathered by a third party.
“Our proposed Gathering System will enhance our connectivity
directly to well pads, thus eliminating the need for trucking and
provide a seamless wellhead to market pipeline solution. We are
excited to expand our relationship with one of the leading
operators in the basin, which now has made long-term commitments of
the production from approximately 300,000 acres for downstream
transportation on our existing infrastructure,” said Grant Sims,
CEO of Genesis. “The basin continues to see increasing drilling
activity and our existing Powder River Basin Pipeline is well
positioned to provide reliable deliveries to multiple attractive
downstream markets.”
The Powder River Basin Pipeline
The Powder River Basin Pipeline includes approximately 140 miles
of transmission pipeline spanning portions of Campbell, Converse,
Niobrara and Platte Counties. Subsidiaries of Genesis also own over
300 miles of legacy low-pressure crude oil gathering pipelines in
Converse and Niobrara Counties and four truck and storage terminals
near the Wyoming towns of Wright, Bill, Douglas and Guernsey,
Wyoming, with over 800,000 barrels of storage capacity currently in
service or under construction. Genesis also has permits in hand to
expand its storage capacity by over 1,000,000 barrels with
additional tankage in Campbell, Converse and Platte Counties.
Open Season Information
The open season will commence today, November 27, 2017
at 8:00 a.m. CST and will end on December 22,
2017 at 5:00 p.m. CST. Existing shippers with effective
acreage dedication transportation services agreements (“TSA”) with
Powder River Crude Services, LLC and Powder River Express, LLC will
have the option to participate in the open season for the purpose
of amending their existing TSAs to add additional acreage to be
dedicated to the Gathering System. To be eligible for this option,
shippers must extend the primary term of the existing Powder River
Basin Pipeline TSAs commensurate with the term of the Gathering
Agreement. For additional information related to the open season,
please visit http://www.genesisenergy.com/wyoming-open-season or
contact Dwayne Morley, Senior Director – Business Development,
by phone at (713) 860-2536 or by e-mail at
dwayne.morley@genlp.com.
About Genesis Energy
Genesis Energy, L.P. is a diversified midstream energy master
limited partnership headquartered in Houston, Texas. Genesis’
operations include offshore pipeline transportation, sodium
minerals and sulfur services, marine transportation and onshore
facilities and transportation. Genesis’ operations are primarily
located in Texas, Louisiana, Arkansas, Mississippi, Alabama,
Florida, Wyoming and the Gulf of Mexico. For more information,
please visit www.genesisenergy.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171127005241/en/
Dwayne Morley, 713-860-2536Senior Director – Business
Developmentdwayne.morley@genlp.com
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