DJ South Gathering LLC (DJS) has launched a supplemental binding open season for shipper commitments on a new crude oil pipeline system it intends to build in Colorado.
The company, an affiliate of Denver-based ARB Midstream, said “changes in the market” prompted it to gauge support via another open season. The announcement late Wednesday comes as other interstate crude lines and midstream operators in the region are expanding to serve more production and alleviate takeaway constraints in the Denver-Julesburg (DJ) and Power River basins.
DJS launched the initial open season for the 220,000 b/d project last December, which is already backed by multiple long-term shipping commitments.
The new system, DJS said, would move oil from origin points in Adams and Weld counties, CO, to destination points at the Platteville and Lucerne stations in Weld County. From there, volumes would move on third party pipelines to the oil hub in Cushing, OK, or further downstream.
Connections would be available to the Saddlehorn, Pony Express and White Cliffs interstate pipelines, which have all recently announced conversions or expansions to move oil and natural gas liquids south from the Rockies.
DJS said it plans to construct the 38-mile Matador Pipeline from a central receipt point (CRP) in Adams County to the Platteville Station; the 32-mile Badger Pipeline from a CRP in Weld County; and a 22-mile, yet-to-be-named pipeline from the Platteville to Lucerne station. The system is expected to enter service early next year.
The company is seeking shippers willing to make long-term acreage dedications with or without minimum volume commitments in exchange for priority capacity. The open season is through Oct. 1. More information can be found on the company’s website.
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