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.

Source:
pgjonline

Joint Venture to Expand Footprint in Colorado's DJ Basin

Black Diamond Gathering has entered into a pair of deals that will expand its oilfield footprint in Colorado's DJ Basin to 243,000 acres. Black Diamond Gathering is a joint venture between Noble Midstream Partners and Greenfield Midstream.

Recently Black Diamond and Noble Energy agreed to ship crude oil on the Saddlehorn Pipeline. The Saddle horn pipeline is a project led by Magellan Midstream Partners that connects shale basins in Powder River Basin Wyoming and DJ Basin in Colorado to storage terminals in Cushing, Oklahoma.

"This opportunity is a natural expansion of Black Diamond's strategic footprint, with the ability to realize economics further down the crude oil value chain while enhancing the all-in value proposition for our customers," Noble Midstream Partners CEO Brent Smolik said in a statement.

Noble Midstream Partners and Greenfield Midstream owns 54.4 percent and 45.6 percent of Black Diamond respectively. The joint venture owns and operates 240 miles of pipeline and has 390 million barrels of crude oil storage capacity.

Black Diamond's deal with Magellan gives the joint venture an option to buy a 20 percent stake in the Saddlehorn Pipeline. The 15-year deal expands Black Diamond's presence by 85,000 acres, giving the joint venture a 243,000-acre footprint in the DJ Basin.

Source:
chron

Saddlehorn Pipeline Announced Capacity Expansion

Saddlehorn Pipeline’s successful open season during July and the subsequent increased volume commitments from shippers allowed Saddlehorn Pipeline Company, LLC to announce a further expansion on its pipeline. The pipeline’s capacity will be increased by a total of 100,000 barrels per day to a new total capacity of approximately 290,000 barrels per day.

Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P. and Western Midstream Partners, L.P. jointly owns the Saddlehorn pipeline. The pipeline is currently capable of transporting 190,000 barrels per day of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020.

Source:
worldpipelines

Natural Gas and NGL Infrastructure Expansions Announced by ONEOK

The plans to expand its natural gas and natural gas liquids infrastructure between now and 2021, was announced by ONEOK, Inc.

An expansion of a 200 million cubic feet per day Bear Creek natural gas processing facility and related infrastructure in the Williston Basin is expected to cost approximately $405 million and expecting to be completed in the first quarter of 2021. Following the completion of the Bear Creek expansion, ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day.

The 65,000 barrels per day expansion to ONEOK's Mid-Continent NGL fractionation facilities are expected to cost approximately $150 million. The expansion includes 15,000 barrel per day expected to be completed in the third quarter 2020 and 50,000 barrel per day expected to be completed in the first quarter 2021. 

The West Texas LPG pipeline expansion will add an additional 80,000 barrel per day on the West Texas LPG pipeline system and is expected to be completed in the first quarter 2020. The cost is expected to be approximately $145 million.

In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.

Source:
worldpipelines

Open Season Announced for Saddlehorn Pipeline Expansion

Saddlehorn Pipeline Company, LLC has announced the expansion of Saddlehorn pipeline and has launched an open season to solicit long-term commitments for capacity on the pipeline system. The company will also add the new Ft. Laramie origin by leasing capacity on third-party pipelines.

The pipeline’s current transportation capacity is 190,000 barrels per day of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains. The expansion will increase pipeline’s capacity by up to 100,000 barrels per day, which will mark a new total capacity of 290,000 barrels per day.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020. The company announced that interested customers must submit binding commitments by 12:00 p.m. Central Time on 31 July, 2019.

Source:
worldpipelines

Binding Open Season Announced for Thunder Creek NGL Pipeline

A binding open season to secure volume dedications for the proposed construction and development on its existing Thunder Creek NGL Pipeline system was announced by Meritage Midstream. The binding open season started at 8:00 AM MT on June 10, 2019 and is scheduled to conclude at 5:00 PM MT on July 10, 2019.

The pipeline will transport NGLs from two processing plants in Campbell and Converse counties, Wyoming, to an interconnection point with ONEOK's Bakken Pipeline in Converse County.

Meritage said the open season seeks to obtain volume dedications from shippers to the following proposed new movements:

1. Originating from Thunder Creek Gas Services' 50 Buttes Process Plant in Campbell County with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, and

2. Originating from Thunder Creek's Steamboat I Natural Gas Plant in Converse County, with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, Wyoming.

The proposed new origin and destination points will allow potential shippers to move product from Thunder Creek plants in the Powder River Basin to a newly established interconnect with ONEOK Bakken Pipeline at Well Draw in Converse County.

It will then provide access to ONEOK’s Niobrara Lateral, which will ultimately access newly created capacity on ONEOK’s Elk Creek expansion. The new movements is expected to be completed in the third quarter of 2019, subject to shipper demand.

Source:
pgjonline

Iron Horse Pipeline Receives Temporary Embargo As River Floods

Last week, Tallgrass Energy LP placed a temporary embargo of deliveries for both the Tallgrass Iron Horse Pipeline and the Pony Express Pipeline, because of the major flooding in Oklahoma on the Cimarron River.

The Iron Horse pipeline is a project between Tallgrass Energy and Silver Creek Midstream with the goal to allow access of crude oil from Powder River Basin to Guernsey, Wyoming. When operations are safe to begin again, they are to restore service. 

The flooding is causing major concerns as reports say 10 homes have fallen into the water since water levels began to rise last week.

The Cimarron River extends 698 miles across New Mexico, Oklahoma, Colorado, and Kansas.

Source:
Reuters

Open Season Announced for Bayou Bridge Pipeline System

Bayou Bridge Pipeline, LLC, a joint venture owned by subsidiaries of Energy Transfer and Phillips 66 Partners recently announced a non-binding expansion open season that commenced at 1 pm CT on 22 April 2019 to solicit shipper interest for expanded joint tariff transportation service received from certain connecting carriers onto the Bayou Bridge Pipeline System.

Energy Transfer owns 60% and Phillips 66 Partners owns 40% of the Bayou Bridge Pipeline system. It is operated by a wholly owned subsidiary of Energy Transfer Operating, L.P. Bayou Bridge is evaluating joint tariff service from origin points in the Bakken/Three Forks Region in North Dakota; Patoka, Illinois; the Powder River Basin in Wyoming; the DJ Basin in Colorado; Cushing, Oklahoma; and the Permian Basin.

Bayou Bridge also continues to evaluate additional Southern Louisiana destination points to increase options for shippers on the system,in addition to the routes that are the subject of this non-binding expansion open season. Bayou Bridge will hold a binding expansion open season to finalize committed subscriptions, following the confirmation of shipper interest.

Source:
worldpipelines

Genesis Energy Sells Pipeline Assets as Wyoming Emerges as Newest Big Shale Play

Houston's Genesis Energy is selling its Powder River Basin pipeline assets in Wyoming for $300 million.

With oil companies looking for the next big find, many have turned to the Powder River Basin of Wyoming that offers less congested and cheaper land than in the Permian Basin.  

Genesis is unloading its facilities in what is considered to be the next big emerging shale play in the country. Independent Houston producers such as EOG Resources and Anadarko Petroleum are all expanding in Wyoming.

Genesis is selling its pipeline, rail and oil gathering assets in the Powder River Basin to Dallas-based Silver Creek Midstream, which is looking to grow its Wyoming presence.

Genesis plans to use the cash proceeds to reduce its debt. While Genesis is primarily a pipeline business, it has spent over a billion dollars expanding into the alkali mining business in Wyoming.

Source:
Houston Chronicle

Tallgrass Energy Partners, Silver Creek Midstream Announce Iron Horse Pipeline Joint Venture

The above map depicts the planned Iron Horse Pipeline and associated Silver Creek and Tallgrass infrastructure. Note: The Silver Creek Midway Terminal, Iron Horse Pipeline, and Tallgrass Guernsey Terminal are under construction. (Graphic: Business Wire)

The above map depicts the planned Iron Horse Pipeline and associated Silver Creek and Tallgrass infrastructure. Note: The Silver Creek Midway Terminal, Iron Horse Pipeline, and Tallgrass Guernsey Terminal are under construction. (Graphic: Business Wire)

Tallgrass Energy Partners and Silver Creek Midstream announced plans to develop the Iron Horse Pipeline, a joint venture to move crude oil from the Powder River Basin to Guernsey, Wyoming.

Iron Horse will connect Silver Creek's developing gathering system to Tallgrass' Guernsey Terminal, which is currently being built, and then to Tallgrass' Pony Express crude pipeline system as well as other pipelines at Guernsey.

Tallgrass has also signed documents to sell its 50-mile Powder River Basin crude oil gathering system to Silver Creek, helping to position Silver Creek as the preeminent crude oil gathering company in that basin.

Tallgrass will own 75 percent of the joint venture and operate the 80-mile, 16" pipeline. Silver Creek will own the remaining 25 percent.

Iron Horse is expected to be in service in the first quarter of 2019 and to have an initial capacity of 100,000 barrels per day with the potential for significant expansion.

Source:
PennEnergy