Navigator Energy Services Significantly Expands Glass Mountain Pipeline System

  • Multiple New Origin Points, Additional Storage and Transportation
    Capacity
  • New Segregated Crude Grades
  • Expanded Market Access via Construction of the Cushing Express Pipeline
  • New Interconnection with Magellan Midstream Partners, L.P.

DALLAS–(BUSINESS WIRE)–Navigator
Energy Services
(“Navigator”) announced today that it is
significantly expanding its Glass Mountain Pipeline System (“GMP”),
adding new segregated crude grades, additional storage and
transportation capacity, multiple new origin points, and new market
access at Cushing, Oklahoma. GMP currently serves crude oil and
condensate producers and other shippers in the STACK, Woodford/CANA,
Granite Wash, and Mississippi Lime areas of the Anadarko Basin in
central Oklahoma.

The GMP expansion will add five new mainline origination points in
Canadian, Kingfisher and Grady Counties, Oklahoma, further extending
service into the STACK, Woodford/Cana, Merge and SCOOP plays. The
expansion includes approximately 70 miles of new transportation
mainlines and approximately 750,000 barrels of additional storage
capacity. Underpinning the expansion are multiple long-term agreements
with top tier operators representing more than 50,000 barrels per day
(bpd) of existing production and almost 600,000 operated acres, bringing
Navigator’s total dedicated acreage in Oklahoma to more than 800,000
acres.

As a result of the aforementioned expansion and underlying contracts,
Navigator has begun initial construction of the Cushing Express
Pipeline, a new 20-inch pipeline to transport segregated crude grades
from the production field to its destinations in Cushing. The Cushing
Express Pipeline will add an initial 250,000 bpd of incremental
deliverability.

Additionally, in response to customer demand and increased throughput
needs, Navigator completed a new interconnection with Cushing terminals
owned by a subsidiary of Magellan Midstream Partners, L.P. (“Magellan”).
The Magellan terminal will provide Navigator with access to a
high-capacity distribution network, reaching new markets and
approximately 1.75 million barrels 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 barrels. 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 will also seamlessly
integrate into Navigator and Magellan’s proposed Voyager
Pipeline
, which will provide Navigator customers a direct path from
the Oklahoma production field to the Gulf Coast.

“We are excited about the significant expansion of our GMP system and
the increased optionality it provides for our customers,” said Laura
McGlothlin, Navigator Chief Commercial Officer. “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.”

Once the expansion is complete, Navigator’s Glass Mountain Pipeline
System will include more than 440 miles of pipeline, 10 truck injection
stations, approximately 4.3 million barrels of storage to accommodate
five neat grades of crude oil and condensate, and pipeline capacity to
transport in excess of 450,000 bpd. Navigator is already providing
service at one of the five new origin points and expects to be in
service with the entire expansion in the third quarter of 2019.

Voyager Pipeline Extended Open Season

Magellan and Navigator’s previously announced Voyager Pipeline is a
proposed project to construct a new, approximately 500-mile crude oil
and condensate transportation pipeline from Magellan’s terminal in
Cushing to Magellan’s East Houston terminal, with further deliverability
through Magellan’s Houston distribution system to the Seabrook
Logistics, LLC marine loading terminal that is operated and owned 50% by
Magellan. The binding open season for Voyager Pipeline was recently
extended, now closing March 29 at 12:00 p.m. Central Time. More
information about the Voyager open season is available at https://www.magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx.

About Navigator

Headquartered in Dallas, Navigator provides oil producers with
comprehensive midstream services including crude oil gathering,
transportation and storage. Navigator is focused on domestic midstream
opportunities in both developing and mature producing areas. To learn
more about Navigator, please visit www.navigatorenergyservices.com.

Contacts

Meredith Howard
M2H Communications
meredith@m2hpr.com
210-737-4478

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