Dallas-based Navigator Energy Services said Wednesday it plans to expand the Glass Mountain Pipeline System (GMP), adding segregated crude grades, more storage/transport capacity, multiple origin points and market access at the Cushing hub in Oklahoma.
GMP now serves oil and condensate producers and other shippers working in the Anadarko Basin, including operators working in Oklahoma’s Sooner Trend of the Anadarko, mostly in Canadian and Kingfisher counties (STACK), the Woodford/Cana formations, as well as the Granite Wash and Mississippian Lime.
The expansion would add five mainline origination points in Canadian, Kingfisher and Grady counties, further extending service into the STACK, Woodford/Cana, Merge and South Central Oklahoma Oil Province, aka SCOOP. Included would be 70 miles of transportation mainlines and 750,000 bbl of additional storage capacity.
“Underpinning the expansion are multiple long-term agreements with top tier operators representing more than 50,000 b/d of existing production and almost 600,000 operated acres, bringing Navigator’s total dedicated acreage in Oklahoma to more than 800,000 acres,” management said.
Because of the expansion and underlying contracts, Navigator has begun to construct the Cushing Express Pipeline, a 20-inch diameter pipeline to transport segregated crude grades to Cushing. Cushing Express would add an initial 250,000 b/d of incremental deliverability.
Additionally, in response to customer demand and increased throughput needs, Navigator completed an interconnection with Cushing terminals owned by a subsidiary of Magellan Midstream Partners LP.
The Magellan terminal would provide access to a high-capacity distribution network, reaching new markets and 1.75 million bbl of operating storage to break out Navigator’s neat crude and condensate grades.
“As a result of its Magellan terminal position, Navigator’s Cushing tankage storage capacity is approximately 2.75 million bbl,” management said. “The increase in storage capacity allows Navigator to provide its customers a bulk storage solution for each of its crude and condensate segregations prior to batching downstream.”
The new destination and storage also would integrate into Navigator and Magellan’s proposed Voyager Pipeline, a 300,000 b/d system that offers customers a direct path from Oklahoma’s oilfields to the Gulf Coast.
“The new assets and segregated grade offerings, along with integration to the proposed Voyager Pipeline, are a strategic and consistent extension of Navigator’s overarching business plan to provide the optimal transportation solution to shippers, directly linking multiple production areas and crude grades with end-users in liquid markets,” said Navigator’s Laura McGlothlin, chief commercial officer.
Once the expansion is complete, Glass Mountain would include more than 440 miles of pipeline, 10 truck injection stations, 4.3 million bbl of storage to accommodate five neat grades of oil/condensate and pipeline capacity to transport more than 450,000 b/d.
Navigator said it already is providing service at one of the five new origin points and expects to be in service with the entire expansion in 3Q2019.