SemGroup Corp. and Gavilon LLC have completed acquisition of a 25% share of Glass Mountain Pipeline LLC, previously owned by an affiliate of Chesapeake Energy Corp. SemGroup now owns 50% percent of Glass Mountain Pipeline; the remaining 50% is owned by Gavilon. Chesapeake will maintain its long-term transportation agreement with Glass Mountain Pipeline, providing the economic incentive for its construction.
The Glass Mountain Pipeline will have initial capacity of 140,000 bopd and 440,000 bbls of intermediate storage. It will consist of two laterals – one will originate near the town of Alva in Woods County, OK. The second will originate near the town of Arnett in Ellis County, OK.
The pipeline will increase in diameter where the laterals intersect near Cleo Springs in Major County, OK and continue east to Cushing, OK. The pipeline will terminate at Gavilon’s Cushing facility, where the joint venture will own 1 MMbbls of crude oil storage. Following pipeline construction, Rose Rock Midstream LP, SemGroup’s master limited partnership, will serve as the pipeline operator.