Crimson Midstream and MPLX Announce Binding Open Season for Swordfish Pipeline
FINDLAY, Ohio, Oct. 17, 2018 /PRNewswire/ -- Crimson Midstream, LLC, and MPLX LP (NYSE: MPLX), today announced the commencement of a binding open season to assess interest and solicit commitments from prospective shippers for transportation service on the Swordfish Pipeline.
The Swordfish Pipeline is being jointly developed by Crimson and MPLX to provide connectivity from existing terminal facilities in St. James, Louisiana, and Raceland, Louisiana, to the Louisiana Offshore Oil Port LLC (LOOP) terminal facility in Clovelly, Louisiana. The proposed pipeline would be a multi-diameter batched system with the ability to transport up to 600,000 barrels of crude oil per day and provide shippers with access to storage services, vessel loading, as well as connectivity to other carriers at the Clovelly Hub. The in-service date for the Swordfish Pipeline is anticipated to be in the first half of 2020.
The binding open season will begin at 8 a.m. CDT on Oct. 17, 2018, and will conclude at noon CST on Nov. 30, 2018. The binding open season provides interested shippers with an opportunity to secure transportation service on the proposed pipeline.
"Swordfish is an industry solution that provides needed capacity to local Louisiana refineries and to the Clovelly Hub based on market demands," said MPLX President Michael Hennigan. "We believe our pipeline's ability to be paired with existing assets will make it more competitive than alternative projects to supply refiners in the region. The pipeline would also provide needed additional capacity for exporters of North American crude."
"Leveraging mostly existing infrastructure, this open season offers Gulf Coast refiners and North American crude exporters a first-to-market pipeline solution providing reliable supply from St. James," added Larry Alexander, Crimson's president and chief operating officer. "The Swordfish Pipeline enables Crimson and MPLX to provide transportation solutions from St. James to a wide range of markets."
About Swordfish Pipeline
The proposed Swordfish Pipeline would originate from terminal facilities in St. James, Louisiana, and Raceland, Louisiana, and provide service to the Clovelly Hub. Storage and further transportation services to end markets would be facilitated through the Clovelly Hub and connecting carriers. Pending shipper interest and final construction of the project, the Swordfish Pipeline is expected to be a multi-diameter (16", 20" and 30") batched system with the ability to transport various levels of capacity, from approximately 170,000 to 600,000 barrels of crude oil per day based on market demands. The completion of the Swordfish Pipeline will have minimal impact on current shippers on the Crimson system, as their ability to access the St. James and local refining markets will be maintained.
Open Season Process
Documents and further details related to the binding open season will be made available upon completion of a confidentiality agreement, available at:
http://www.crimsonmidstream.com/shipper-information
http://www.mplx.com/St_James_to_Clovelly_Binding_Open_Season/
All interested shippers should submit an executed confidentiality agreement to:
Will Airhart
Attorney
539 S. Main St., Rm. 887-M
Findlay, OH 45840
Direct: 419-421-4561
Email: [email protected]
About Crimson Midstream, LLC
Crimson Midstream LLC is a provider of crude oil transportation and storage services in California, Louisiana, and offshore Gulf of Mexico. Crimson safely and reliably operates more than 2000 miles of pipeline transporting approximately 400 thousand barrels of crude oil per day to end users. Crimson is led by a management team with deep experience in pipeline operations and management. For further information on Crimson, visit the company's website at http://www.crimsonmidstream.com.
About MPLX LP
MPLX is a diversified, growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation to own, operate, develop and acquire midstream energy infrastructure assets. MPLX is engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; the transportation, storage and distribution of crude oil and refined petroleum products; and the refining logistics and fuels distribution services through a marine fleet and approximately 10,000 miles of crude oil and light product pipelines. Headquartered in Findlay, Ohio, MPLX's assets consist of a network of crude oil and products pipelines and supporting assets, including storage facilities (tank farms) located in the Midwest and Gulf Coast regions of the United States; 62 light-product terminals with approximately 24 million barrels of storage capacity; an inland marine business; storage caverns with approximately 2.8 million barrels of storage capacity; a barge dock facility with approximately 80,000 barrels per day of crude oil and product throughput capacity; tanks with storage capacity of approximately 56 million barrels as well as refinery docks, loading racks and associated piping; and gathering and processing assets that include approximately 5.9 billion cubic feet per day of gathering capacity, 8.7 billion cubic feet per day of natural gas processing capacity and 610,000 barrels per day of fractionation capacity.
Legal Contact:
Will Airhart
419-421-4561
[email protected]
Commercial Contact:
Nestor Taura
Crimson Midstream
562-285-4148
[email protected]
Matt Heft
Marathon Pipe Line LLC
419-429-5499
[email protected]
This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements relate to, among other things, statements with respect to forecasts regarding capacity, rates, incremental investment and timing for becoming operational for the opportunities discussed above, as well as MPLX's future growth and results of operations. You can identify forward-looking statements by words such as "anticipate," "believe," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "objective," "opportunity," "outlook," "plan," "position," "pursue," "prospective," "predict," "project," "potential," "seek," "strategy," "target," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the company and are difficult to predict. Factors that could impact the opportunities described above are: the ability to negotiate and enter into definitive agreements between the parties; the ability to obtain required regulatory approvals on a timely basis; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products; continued/further volatility in and/or degradation of market and industry conditions; changes to the expected construction costs and timing of projects; completion of pipeline capacity by our competitors; the occurrence of an operational hazard or unforeseen interruption; and the factors set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended Dec. 31, 2017, filed with the Securities and Exchange Commission (SEC). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here or in MPLX's Form 10-K could also have material adverse effects on forward-looking statements. Copies of MPLX's Form10-K are available on the SEC website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
SOURCE MPLX LP
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