$1.3 Billion Deal to Buy SemGroup by Energy Transfer

Energy Transfer LP will buy SemGroup Corp for $1.35 billion and plans to build a 75-mile oil pipeline to strengthen its oil transportation, terminaling and export operations, Energy Transfer said on Monday.

After the purchase, Energy Transfer will gain control of SemGroup’s crude oil terminal on the Houston Ship Channel. The company plans to construct a pipeline between SemGroup’s crude oil terminal and Energy Transfer’s Nederland, Texas terminal.

Energy Transfer will also add SemGroup’s crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas, as well as crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with terminals in Cushing, Oklahoma.

The transaction is expected to close in late 2019 or early 2020. Including SemGroup’s debt, the enterprise value of the deal is $5 billion. The deal, which includes $6.80 in cash and 0.7275 shares of Energy Transfer for each outstanding share of SemGroup, represents a premium of 65.4% to SemGroup’s Friday close.


Temporary Embargo of Deliveries for Pony Express Pipeline Segment

The south end of Pony Express pipeline system has been shut down due to an extensive flooding on the Cimarron River in Oklahoma, Tallgrass Energy LP said on Thursday.

The company has provided notice of a temporary embargo of deliveries for the shut segment that runs from Sterling, Colorado through to Cushing, Oklahoma, a Tallgrass Energy spokeswoman said.

The Pony Express pipeline has a capacity of 320,000 barrels per day and starts in Guernsey, Wyoming, and flows southeast to Cushing, Oklahoma.

“We will restart operations as soon as the weather permits,” she added.


Open Season Extended for Tallgrass Energy’s Pony Express Pipeline

Tallgrass Energy, LP has announced that it has extended and expanded its open season soliciting shipper commitments for crude oil transportation services.

The open season, initially announced on 13 November 2018, has been extended to 14 April 2019. This is to reflect updated rates and contracting options to accommodate newly secured commitments.

The 760-mile Pony Express crude oil pipeline originates in Guernsey, Wyo., and runs through Colorado, Nebraska and Kansas, connecting with three refineries before terminating in Cushing, Okla.

Placed in service in 2014, Pony Express has a design capacity of 320,000 barrels a day, and based on a number of factors has the capacity to transport additional barrels.


Magellan's Open Season for 500 Mile Pipeline Announced as Possibilities of New Houston to Corpus Christi Pipeline is Evaluated

Magellan Midstream Partners and Navigator Energy Services announced the launch of a binding open season on Monday to gauge customer interest in a pipeline project designed to ship light crude and condensate from Cushing, Oklahoma to Houston, Texas.

According to Magellan, the proposed Voyager pipeline would compromise of nearly 500 miles of 20-inch diameter pipe linking the company’s terminals in Cushing and East Houston. Once it reaches Houston, the pipe would link to refineries in the region as well as crude oil export facilities.

The open season documentation states that a new entity called “Magellan Navigator” would operate Voyager. Initial capacity is said to be at least 250,000 barrels per day and would handle up to four light crude and condensate grades.

Magellan also said that the company is evaluating a potential crude oil pipeline from Houston to Corpus Christi as well as a crude export terminal on Harbor Island with capabilities of loading very large crude carriers.

The open season ends January 31, 2019 with the pipeline beginning service by the end of 2020 pending a successful open season and regulatory process.

Rig Zone