Navigator Energy Services said that it is expanding the Glass Mountain Pipeline System (GMP pipeline system) in Oklahoma by nearly 112.6km of new transportation mainlines and about 750,000 barrels of additional storage capacity.
Image: Navigator announces expansion of GMP Pipeline system. Photo: courtesy of anankkml/FreeDigitalPhotos.net.
Currently, the GMP pipeline system caters to crude oil and condensate producers and other shippers in the STACK, Woodford/CANA, Mississippi Lime and Granite Wash areas of the Anadarko Basin in central Oklahoma.
Its latest expansion will see addition of additional storage and transportation capacity, new segregated crude grades, multiple new origin points, and new market access at Cushing.
In this regard, five new mainline origination points will be added in Canadian, Kingfisher and Grady Counties in Oklahoma, to further extend service into the STACK, Woodford/Cana, SCOOP and Merge plays.
Navigator has already started providing service at one of the five new origin points and expects entire expansion to be brought into service in the third quarter of 2019.
Upon completion of the expansion, the GMP pipeline system will include over 708km of pipeline, 10 truck injection stations, nearly 4.3 million barrels of storage to facilitate five neat grades of crude oil and condensate, and pipeline capacity to transport more than 450,000 bpd.
The expansion of the GMP pipeline system is backed by various long-term agreements with top tier operators, representing over 50,000 barrels per day (bpd) of existing production and nearly 600,000 operated acres. It will help Navigator’s total dedicated acreage in Oklahoma to cross the 800,000 acres figure.
Navigator chief commercial officer Laura McGlothlin said: “We are excited about the significant expansion of our GMP system and the increased optionality it provides for our customers.
“The new assets and segregated grade offerings, along with integration to the proposed Voyager Pipeline, are a strategic and consistent extension of Navigator’s overarching business plan to provide the optimal transportation solution to shippers, directly linking multiple production areas and crude grades with end-users in liquid markets.”
The Voyager pipeline will be a 20inch diameter pipeline of 500km or so length, to be laid from Cushing to Houston in Texas. Owned by Magellan Midstream Partners and Navigator, the crude oil pipeline, which will have an initial capacity of at least 250,000 barrels per day, is scheduled to begin operations by the end of 2020.
In another development, Navigator started initial construction of the Cushing Express Pipeline, a new 20-inch pipeline with an initial capacity of 250,000 bpd. The pipeline will deliver segregated crude grades from the production field to Cushing.