SemGroup Corporation, Chesapeake Energy and Gavilon Finalize Glass Mountain Pipeline Joint Venture Agreements
May 07 2012 - 8:01AM
Business Wire
A subsidiary of SemGroup® Corporation (NYSE:SEMG), an affiliate
of Chesapeake Energy Corporation (NYSE:CHK), and Gavilon, LLC,
today announced the formation of Glass Mountain Pipeline LLC and
the signing of definitive agreements to build the previously
announced 210-mile crude oil pipeline. Construction of the pipeline
is expected to begin this summer and be commissioned in the fall of
2013.
The new pipeline, constructed by SemGroup, will have an initial
capacity of approximately 140,000 barrels per day and 440,000
barrels of intermediate storage. The pipeline will consist of two
laterals. One lateral will originate near the town of Alva in Woods
County, Oklahoma. The second lateral will originate near the town
of Arnett in Ellis County, Oklahoma. The pipeline will increase in
diameter where the laterals intersect near Cleo Springs in Major
County, Oklahoma and continue east to Cushing, Oklahoma. The
pipeline will terminate at Gavilon’s Cushing facility, where the
joint venture will own one million barrels of crude oil storage.
Following pipeline construction, Rose Rock Midstream, LP
(NYSE:RRMS), 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 the economic
incentive to construct the pipeline. The pipeline system is
expected to meet growing and diverse midstream requirements
resulting from the drilling activity in western Oklahoma and the
Mississippi Lime play.
About SemGroup
Based in Tulsa, Oklahoma, SemGroup® Corporation (NYSE:SEMG) is a
publicly traded midstream service company providing the energy
industry the means to move products from the wellhead to the
wholesale marketplace. SemGroup provides diversified services for
end users and consumers of crude oil, natural gas, natural gas
liquids, refined products and asphalt. Services include purchasing,
selling, processing, transporting, terminalling and storing
energy.
SemGroup®, is a registered trademark of SemGroup
Corporation.
About Rose Rock Midstream
Rose Rock Midstream, L.P. (NYSE:RRMS) is a growth-oriented
Delaware limited partnership recently formed by SemGroup®
Corporation to own, operate, develop and acquire a diversified
portfolio of midstream energy assets. Rose Rock Midstream provides
crude oil gathering, transportation, storage and marketing
services. Headquartered in Tulsa, OK, Rose Rock Midstream has
operations in six different states with the majority of its assets
strategically located in or connected to the Cushing, Oklahoma
crude oil marketing hub.
About Chesapeake Energy Corporation
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas, a Top 15 producer of oil and natural gas
liquids and the most active driller of new wells in the U.S.
Headquartered in Oklahoma City, the company's operations are
focused on discovering and developing unconventional natural gas
and oil fields onshore in the U.S. Chesapeake owns leading
positions in the Barnett, Haynesville, Bossier, Marcellus and
Pearsall natural gas shale plays and in the Eagle Ford, Utica,
Granite Wash, Cleveland, Tonkawa, Mississippi Lime, Bone Spring,
Avalon, Wolfcamp, Wolfberry and Niobrara unconventional liquids
plays. The company has also vertically integrated its operations
and owns substantial marketing, midstream and oilfield services
businesses directly and indirectly through its subsidiaries
Chesapeake Energy Marketing Inc., Chesapeake Midstream Development,
L.P. and Chesapeake Oilfield Services, L.L.C. and its affiliate
Chesapeake Midstream Partners, L.P. (NYSE:CHKM). Further
information is available at www.chk.com where Chesapeake routinely
posts announcements, updates, events, investor information,
presentations and news releases.
About Gavilon, LLC
Gavilon, LLC is a subsidiary of The Gavilon Group, LLC. The
Gavilon Group is a leading commodity management firm, connecting
producers and consumers of feed, food and fuel through its global
supply chain network. Gavilon leverages its strategic partnerships
and more than 300 facilities and regional offices worldwide to link
agricultural and energy supply with demand. The company provides
origination, storage and handling, transportation and logistics,
marketing and distribution, and risk management services to tens of
thousands of customers each year. Headquartered in Omaha, Nebraska,
Gavilon employs 2,000 people around the world and is ranked
America’s nineteenth largest private company by Forbes. For more
information, please visit www.gavilon.com.
Forward-Looking Statements
Certain matters contained in this Press Release include
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We make these
forward-looking statements in reliance on the safe harbor
protections provided under the Private Securities Litigation Reform
Act of 1995.
All statements, other than statements of historical fact,
included in this Press Release including the initial capacity and
anticipated completion date of the pipeline, may constitute
forward-looking statements. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable, we cannot assure you that these expectations will prove
to be correct. These forward-looking statements are subject to
certain known and unknown risks and uncertainties, as well as
assumptions that could cause actual results to differ materially
from those reflected in these forward-looking statements. Factors
that might cause actual results to differ include, but are not
limited to, the possibility that we may encounter construction
delays beyond our control, as well as other risk factors discussed
from time to time in each of our documents and reports filed with
the SEC.
Readers are cautioned not to place undue reliance on any
forward-looking statements contained in this Press Release, which
reflect management’s opinions only as of the date hereof. Except as
required by law, we undertake no obligation to revise or publicly
release the results of any revision to any forward-looking
statements.
Access Midstream Partners L.P. (NYSE:CHKM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Access Midstream Partners L.P. (NYSE:CHKM)
Historical Stock Chart
From Jul 2023 to Jul 2024