Tallgrass Filed Petition to Expand Oil Pipeline Capacity

A petition was submitted to the U.S. Federal Energy Regulatory Commission by Tallgrass Energy LP to expand capacity on its Pony Express crude pipeline by about 70,000 barrels per day.

The current capacity of the pipeline that runs from Guernsey, Wyoming to Cushing, Oklahoma is 400,000 barrels per day. 15,000 barrels per day of new capacity was made available to committed shippers in a recent open season and about 2,000 barrels per day of new capacity will be available for spot shipments.

The expansion will provide crucial capacity to relieve existing constraints that will intensify with the U.S. Energy Information Administration’s predicted production increases for the Bakken region, said Tallgrass.

The company also said that the expansion project will increase capacity to move crude sourced from the Bakken and Powder River basins for delivery to the Cushing oil hub, once placed in service.


Oil Shipper Contracts Secured for Pony Express Pipeline

Contracts for shipments of 165,000 barrels per day was secured by Tallgrass Energy LP on its Pony Express pipeline as it re-contracts portions of the line. Bill Moler, president and chief operating officer told investors that the company had contracted the shipments around $2.50 a barrel for terms ranging from three to five years.

He also added that the company is in advanced discussions to contract another 70,000 barrels per day near those rates. The Pony Express pipeline originates in Guernsey, Wyoming, and terminates at the main U.S. oil storage hub in Cushing, Oklahoma.

“It’s been a very competitive environment. We’ve fought hard for those barrels. We’re getting close” to securing the additional shipper contract now under discussion, Moler said.

The pipeline runs through Colorado, Nebraska and Kansas and receives crude produced in the Bakken, Denver Julesburg and Powder River oil fields in the U.S. Midwest. The oil shippers under new contracts are spread out geographically, though the company could not disclose their locations, Moler said.


Open Season Announced for Pony Express Crude Oil Pipeline

Tallgrass Energy has launched a binding open season on its Pony Express Pipeline to solicit shipper commitments for crude oil transportation. The open season began at noon on Oct. 1, 2019.

The Pony Express pipeline is owned and operated under a joint tariff between Pony Express Pipeline and the Iron Horse Pipeline.

The pipeline transports crude oil from the Powder River Basin to Guernsey, Wyoming and from there it connects with Pony Express for delivery to three refineries and Cushing, Oklahoma.


Kinder Morgan Announces Pipeline Expansion in North Dakota

Kinder Morgan announced that the company is evaluating how much more capacity it will need to expand the Hiland Crude system based on the level of interest and the volume commitments it secures.

It's the third announcement of a major pipeline project in the state over the past month for carrying more Bakken oil out of North Dakota.

Currently, Hiland Crude system carries 88,000 barrels of oil each day from McKenzie County to Wyoming. From a hub there, Tallgrass Express transports up to 375,000 barrels per day to three refineries and a terminal in Oklahoma with its Pony Express Pipeline.

Tallgrass may also consider expanding the Pony Express line, Kinder Morgan spokeswoman Katherine Hill told the Bismarck Tribune.


Open Season Announced for Bakken Crude Transportation

A binding joint tariff open season to solicit commitments for crude oil transportation service was announced by Kinder Morgan and Tallgrass Energy.

The crude oil transportation services starts from Bakken origin points on the Hiland Crude system, which is currently capable of moving approximately 88,000 barrel per day from Bakken origin points to Guernsey, WY.

Then through the Pony Express system, which is currently capable of moving approximately 375,000 barrel per day from Guernsey to Cushing, OK, connecting to three refineries along the way.

The binding open season begins July 1, 2019, at 4 p.m. Central Time and is expected to end on July 28, 2019, at 5 p.m. Central Time. Upon completion of a confidentiality agreement, additional documents and details related to the open season will be made available.


Temporary Embargo of Deliveries for Pony Express Pipeline Segment

The south end of Pony Express pipeline system has been shut down due to an extensive flooding on the Cimarron River in Oklahoma, Tallgrass Energy LP said on Thursday.

The company has provided notice of a temporary embargo of deliveries for the shut segment that runs from Sterling, Colorado through to Cushing, Oklahoma, a Tallgrass Energy spokeswoman said.

The Pony Express pipeline has a capacity of 320,000 barrels per day and starts in Guernsey, Wyoming, and flows southeast to Cushing, Oklahoma.

“We will restart operations as soon as the weather permits,” she added.