SemCrude to expand Cushing crude storage

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Apr. 1 -- SemGroup Corp. unit SemCrude LP has contracted with Matrix Services Co. to build 1.95 million bbl of additional crude oil storage at its Cushing, Okla., terminal. The project will include seven 250,000 bbl and two 100,000 bbl crude oil tanks. Upon completion, SemCrude’s total crude storage capacity in Cushing will be 7 million bbl.

SemCrude’s majority-owned White Cliffs Pipeline terminates at Cushing and is the only pipeline moving oil out of the Denver-Julesburg basin directly to Cushing. SemCrude plans to expand White Cliffs’ capacity. The 526-mile, 12-in. OD pipeline entered service in 2009 with a capacity of 30,000 b/d, expandable to 50,000 b/d (OGJ Online, June 2, 2009).

The new tanks will be leased to three customers and are expected to be completed mid-year 2012.

SemCrude’s partners in White Cliffs include Noble Energy’s Samedan pipeline unit 5%, Western Gas Partners subsidiary Anadarko Wattenberg Co. 10%, and Plains All American 34%.

Contact Christopher E. Smith at [email protected].