SemGroup Corp., Noble Energy reach pipeline deal

SemGroup Corp. will build a new crude-oil gathering system in the Denver-Julesburg Basin for use by Noble Energy Inc., SemGroup said Thursday.

Once operational, the new gathering system, to be called the Wattenberg Oil Trunkline, will support Noble Energy’s efforts to ship oil within the D.J. Basin, SemGroup said.

The project will consist of a 37-mile, 12-inch pipeline system with 200,000 barrels of operational storage extending north from Rose Rock Midstream’s Platteville Station, the origin point of the major White Cliffs Pipeline. The Wattenberg Oil Trunkline will connect to Noble processing facilities and include facilities to unload trucks.

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“Demand continues to increase for midstream services out of the D.J. Basin,´ said Pete Schwiering, vice president of Tulsa, Okla.-based SemGroup. “Strong crude prices provide attractive economics for producers in this play, and we are excited to be working with Noble Energy to accommodate the increased production.”

Noble has entered into a long-term agreement to use the system. The project is expected be operational in the third quarter of next year.