The facility was constructed in 2015 and is strategically located on 10 acres of land in southern Cushing with long-term connection agreements in place, ultimately providing connectivity to all major inbound and outbound pipelines in Cushing.
SES' majority investment in the 80 acre parcel of land provides the company with the option to develop additional midstream infrastructure in the trading hub. The strategic partners of SES have a long history in constructing similar scale storage infrastructure in the Cushing market and have developed relationships with major companies in the area. SES intends to support any further investment with long-term contracts providing it with certainty over future cash flows.
These transactions provide a measured and strategic entry into a new market, supporting the continued growth and development of SES’ midstream business. Owning infrastructure in Cushing extends the company’s crude oil value chain, providing our customers with market access flexibility to optimise realised pricing and increase operating netbacks.
