Pipeline transportation is generally considered the lowest cost method for shipping crude oil to other locations. Pipelines are used to move about two-thirds of the petroleum shipped in the United States. Logistics hubs like the Cushing Interchange provide storage and connections to other pipeline systems and to other modes of transportation, such as tankers, barges, railroads and trucks. 

SemGroup Energy Partners owns and operates crude oil gathering and transportation systems in the Mid-Continent region of the United States.

Mid-Continent System

Our Mid-Continent System is an 824-mile gathering and transportation network that gathers wellhead crude oil from approximately 11,000 wells. The system transports the crude oil to our Cushing terminal, other storage facilities and local area refiners.

While a majority of the system is in Oklahoma, 34 miles are located in the Texas Panhandle near Dumas, Texas. Crude oil collected by this portion of the system is delivered to a refinery in Borger, Texas.

Our Mid-Continent System pipe measures in diameter from 4 inches to 20 inches. The system’s average throughput is approximately 30,000 barrels per day.

Longview System

Our Longview System is 330 miles of tariff-regulated crude oil gathering pipeline. The East Texas portion of the system delivers crude oil to various terminalling, refinery and storage facilities. The system includes 42 miles of gathering pipeline located near Houston, Texas, that transports crude oil to refineries on the Texas Gulf Coast.

Pipe in our Longview System ranges in diameter from 6 inches to 8 inches, and it has an average annual throughput of approximately 33,000 barrels per day of crude oil. Eight pump stations are scattered along the system.

Eagle North Pipeline System

This 130-mile, 8-inch pipeline originates in Ardmore, Okla., and currently terminals in Drumright, Okla. SGLP currently is investing funds to convert the pipeline from a refined products line to a crude oil system. We also will build a 10-mile, exstension so Eagle North connects with the Cushing Interchange. The pipeline should be flowing crude oil to Cushing by the first quarter of 2009.