Chesapeake sells pipeline share
Chesapeake Energy Corp. has sold its stake in a pipeline under construction to carry crude oil produced in western Oklahoma to the storage hub at Cushing. Chesapeake, SemGroup Corp. and Omaha, Neb.-based Gavilon Midstream Energy LLC announced plans to build the 210-mile pipeline in February. SemGroup and Gavilon have acquired Chesapeake's 25 percent stake in the project, the companies reported Wednesday. Chesapeake will maintain its long-term transportation agreement with the joint venture, Glass Mountain Pipeline. “Chesapeake is proud to be involved in this significant project to deliver increased volumes of Oklahoma oil to market,” Chesapeake spokesman Michael Kehs said. “This will benefit producers, royalty owners and the state.” The pipeline will have laterals originating in Alva and Arnett, with 440,000 barrels of storage at Cushing. It will be operated by SemGroup subsidiary Rose Rock Midstream LP.