Genesis Energy, L.P. Announces New Powder River Basin Acreage Dedications and Open Season for New Crude Oil Gathering Services in Campbell and Converse Counties, Wyoming
HOUSTON–(BUSINESS WIRE)–Genesis Energy, L.P. (NYSE:GEL) announced today it has launched a
binding open season to secure long-term commitments to support a new
gathering system (the “Gathering System”) to connect crude oil
production to its existing Powder River basin pipeline (the “Powder
River Basin Pipeline”). The Powder River Basin Pipeline, which is wholly
owned and operated by subsidiaries of Genesis, provides producers in
Wyoming’s emerging Powder River basin access to multiple attractive
markets, including additional downstream markets at Guernsey, Wyoming,
regional refineries and/or west, east and gulf coast markets via the
Pronghorn Rail loading terminal directly connected to both the Union
Pacific and BNSF railroads.
The Gathering System is supported by a new contract with one of the
leading operators in the Powder River basin. The operator will dedicate
approximately 150,000 acres to the Gathering System and the Powder River
Basin Pipeline for a period of ten years. Additionally, the operator has
extended the term of its existing contracts, in which it previously
dedicated approximately 150,000 acres to the Powder River Basin
Pipeline, for a period of ten years. Production from the previously
dedicated acreage is currently gathered by a third party.
“Our proposed Gathering System will enhance our connectivity directly to
well pads, thus eliminating the need for trucking and provide a seamless
wellhead to market pipeline solution. We are excited to expand our
relationship with one of the leading operators in the basin, which now
has made long-term commitments of the production from approximately
300,000 acres for downstream transportation on our existing
infrastructure,” said Grant Sims, CEO of Genesis. “The basin continues
to see increasing drilling activity and our existing Powder River Basin
Pipeline is well positioned to provide reliable deliveries to multiple
attractive downstream markets.”
The Powder River Basin Pipeline
The Powder River Basin Pipeline includes approximately 140 miles of
transmission pipeline spanning portions of Campbell, Converse, Niobrara
and Platte Counties. Subsidiaries of Genesis also own over 300 miles of
legacy low-pressure crude oil gathering pipelines in Converse and
Niobrara Counties and four truck and storage terminals near the Wyoming
towns of Wright, Bill, Douglas and Guernsey, Wyoming, with over 800,000
barrels of storage capacity currently in service or under construction.
Genesis also has permits in hand to expand its storage capacity by over
1,000,000 barrels with additional tankage in Campbell, Converse and
Platte Counties.
Open Season Information
The open season will commence today, November 27, 2017 at 8:00 a.m.
CST and will end on December 22, 2017 at 5:00 p.m. CST. Existing
shippers with effective acreage dedication transportation services
agreements (“TSA”) with Powder River Crude Services, LLC and Powder
River Express, LLC will have the option to participate in the open
season for the purpose of amending their existing TSAs to add additional
acreage to be dedicated to the Gathering System. To be eligible for this
option, shippers must extend the primary term of the existing Powder
River Basin Pipeline TSAs commensurate with the term of the Gathering
Agreement. For additional information related to the open season, please
visit http://www.genesisenergy.com/wyoming-open-season
or contact Dwayne Morley, Senior Director – Business Development, by
phone at (713) 860-2536 or by e-mail at [email protected].
About Genesis Energy
Genesis Energy, L.P. is a diversified midstream energy master limited
partnership headquartered in Houston, Texas. Genesis’ operations include
offshore pipeline transportation, sodium minerals and sulfur services,
marine transportation and onshore facilities and transportation.
Genesis’ operations are primarily located in Texas, Louisiana, Arkansas,
Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico. For more
information, please visit www.genesisenergy.com.
Contacts
Dwayne Morley, 713-860-2536
Senior Director – Business Development
[email protected]