Tallgrass Energy LP (TGE) is gauging interest through Oct. 1 in Seahorse Pipeline, a crude oil transportation system, that would carry up to 800,000 b/d from the Cushing hub in Oklahoma to the Louisiana coast for potential exports overseas.
Seahorse as proposed would be 30 inches in diameter and run 700 miles. It would be operated as a multi-grade common batch system, which along with TGE’s Pony Express Pipeline, would provide access to five U.S. producing basins.
Depending on support, Seahorse could begin commercial operations by 3Q2021.
Last year, TGE forged an agreement with Saddle Butte Pipeline to develop an oil terminal in Platteville, CO, to interconnect with the Denver-Julesburg (DJ) Basin crude oil gathering system.
Ultimately, the Tallgrass Grasslands Terminal plans to offer direct access to refining and Cushing, hubs.
To accommodate shipper interest and continued growth in the Powder River, DJ and Bakken producing regions, TGE said it also plans to complete pump optimization projects to expand Pony Express capacity to carry up to 400,000 b/d by the end of the year. TGE owns 98% of the pipeline.
If shipper interest exceeds the added capacity, Tallgrass said it may expand Pony Express again “through potential additional horsepower and/or looping to facilitate large-scale movements from Guernsey and northeast Colorado.” April throughput on Pony Express was about 335,000 b/d, and May nominations were expected to exceed 350,000 b/d.
“We’ve got more volumes going to third-party connected refineries than we’ve ever had, and it’s starting to prove out our thesis about making this more of a market-driven pipeline than a supply-driven pipeline,” COO Bill Moler said about Pony Express in May.
For information about Seahorse, contact Kyle Quackenbush, (303) 763-3319; Andrew DiPaolo, (303) 763-3329; or Dean Dick, (307) 232-4430.
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