NGL Energy Partners LP (NYSE: NGL) has announced that a requisite open season will begin on July 9, 2021, for its entirely held affiliate Grand Mesa Pipeline, LLC’s crude pipeline.
Grand Mesa offers the take-out capability for crude oil producers
Grand Mesa delivers take-out capacity for crude oil producers in the Denver-Julesburg Basin. The pipeline is proficient in getting and batch conveying up to 150,000 barrels per day for distribution into the Cushing hub, which gives its transporters admittance to both U.S. Midcontinent purifying and exchange markets and the Texas Gulf Coast refinery facility.
The pipeline not only supports the sustained progress and creation in the zone but does so in a cost-effective and ecologically accountable way by plummeting the present exploitation of rail and wagon conveyance.
In 2016, NGL held an open season looking for assurances from transporters involved in delivery on Grand Mesa’s pipeline system. In response to the 2016 open season, Grand Mesa engaged conveyance service contracts with various transporters.
Due to new transporter insolvencies and connected agreement cessations, dedicated volume on Grand Mesa’s scheme has become obtainable again. Consequently, NGL is holding the current open season to re-contract obtainable volume on the Grand Mesa pipeline.
Under this open season procedure, the conveyance facilities are being presented under terms and conditions that are considered comparable to those relevant to the dedicated transporters that contracted conveyance service contracts in the 2016 open season, as stated in the open season papers.
Company reports loss of $380.4 Million in the third quarter of Fiscal 2021
In other news, the company has reported a loss from ongoing operations for the third quarter of Fiscal 2021 of $380.4 million. The loss is chiefly a result of a $383.6 million write-down of generosity and definite intangibles connected to the influence of the insolvency denial of conveyance contracts with Extraction Oil & Gas, Inc.
Adjusted EBITDA from ongoing operations for the third quarter of Fiscal 2021 of $125.0 million, squeezed by lesser volumes on the Grand Mesa Pipeline, lesser mandate in the Liquids and Refined Products section due to the COVID-19 epidemic and lower remunerations related to biodiesel tax credits, compared to $200.5 million for the third quarter of Fiscal 2020.