Sawtooth Caverns is the largest, by volume, provider of natural gas liquids (NGLs) storage service in the Western United States (PADD IV and V markets).  The facility currently has 5 caverns with a combined storage capacity of 6.2 million barrels, which provides storage of propane, normal butane and refinery grade butanes.  With the pending addition of refined products storage service (diesel and gasoline), Sawtooth is planning to become an even more significant market participant in servicing the western NGLs and refining markets.  Sawtooth provides cost competitive, bulk cavern storage capacity, with Union Pacific Railroad mainline connection and interstate highway access for trucks.  The pending refined products expansion is exploring an interconnect to the UNEV pipeline, which connects the refineries in Salt Lake City and upstream refineries in Wyoming and Montana, to the Las Vegas market.  Sawtooth is also considering expansion of the existing rail facilities to a full loop, which would allow unit train service, and the truck racks to accommodate refined products loading and offloading.

Sawtooth Caverns was initially constructed by Magnum Energy via the Magnum NGLs project company.  The project was the first of the Magnum Energy’s opportunities to enter the construction phase, as an NGL storage project.  Construction broke ground in April 2013 and was placed into service in April 2014.  This initial project was sold to NGL Energy Partners for $280 million in February 2015.  

HEP Liquids, an investment fund SPV, was formed in March 2018 by Haddington and via its wholly owned asset holding company, Magnum Liquids, acquired an approximate 20% common equity ownership interest in Sawtooth Caverns from NGL Energy Partners.  Additionally, Magnum Energy contributed the refined products business rights to Sawtooth for an approximate 8% common equity ownership interest, which allows the facility to expand its services into the refined products markets. Sawtooth operates as a JV between the three common equity unitholders with 50/50 governance controlled by HEP Liquids/Haddington and NGL Energy Partners. HEP Liquids further received options to acquire all of NGL Energy Partners’ ownership interest in Sawtooth.

Additional information can be found on the company’s website at http://www.sawtoothcaverns.com