The Hiland Crude LLC unit of Kinder Morgan Inc. (KMI) and a subsidiary of Tallgrass Energy LP (TGE) are holding a joint binding tariff open season through July 28 to test support for crude transportation service from Bakken Shale origin points to delivery points along the Pony Express system and to the Cushing hub.
The Tallgrass Pony Express Pipeline is capable of transporting about 375,000 b/d from Guernsey, WY, to Cushing and includes connections to three refineries along the way.
Hiland is capable of transporting around 88,000 b/d from Bakken origin points to Guernsey, WY. KMI acquired Hiland four years ago; the system operates in Montana, North Dakota and Oklahoma.
For additional information on the open season, contact KMI’s Dwaine Shroyer, vice president of business development via email or at (918) 588-5074. Information also is available from Kyle Quackenbush at (303) 763-3319 or Andrew DiPaolo at (918) 588-5074 with Tallgrass.
Earlier this year TGE and KMI agreed to boost takeaway capacity in the Power River and Denver-Julesburg basins. Under the agreement, Pony Express would add capacity to carry up to 400,000 b/d via its pump optimization projects. The combined pipeline system is expected to be capable of delivering up to 800,000 b/d of light crude oil and 150,000 b/d of heavy crude from points in Wyoming and Colorado to the TGE and KMI Deeprock terminal in Cushing.
From there, customers would have pipeline connectivity to the Gulf Coast and export markets through the Tallgrass Seahorse Pipeline and other existing or proposed projects. The combined project is expected to provide service as early as the second half 2020.