Milestone: NGP-backed Crimson Midstream in pipeline JV with MPLX ($MPLX)


[Context: On October 17, Crimson Midstream, backed by, announced a binding open season for the Swordfish Pipeline from St. James, Louisiana, to Clovelly, Louisiana, with MPLX (NYSE: MPLX). As noted previously, Crimson Midstream is an affiliate of Crimson Pipeline, which is backed by Natural Gas Partners. Further details and related links are below.]

Crimson Midstream | Crimson Pipeline|Natural Gas Partners 


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.

All interested shippers should submit an executed confidentiality agreement to:

Will Airhart
539 S. Main St., Rm. 887-M
Findlay, OH 45840
Direct: 419-421-4561

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.


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.

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