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Kinder Morgan launches DJ basin crude oil pipeline open season

Kinder Morgan Energy Partners LP launched an open season for firm transportation capacity on its proposed Pony Express Crude Oil Pipeline Project.

The project involves converting 500 miles of natural gas pipeline, originating in Guernsey, Wyo., and ending in central Kansas, to crude oil service and constructing 210-miles of new pipeline between central Kansas and Cushing, Okla.

Pony Express would provide up to 210,000 b/d of light crude capacity to various sources near Guernsey, including interconnects with the Platte Pipeline and the Bridger-Butte Pipeline. It also will provide a potential new receipt point in the DJ basin-Niobrara area in northeastern Colorado.

The binding open commitment period began Sept. 8 and is scheduled to end Oct. 13.

Subject to customer commitments and regulatory approvals, Kinder Morgan expects Pony Express to enter service first-quarter 2014.

Bill Barrett Corp. expanded its Niobrara crude oil position to 67,000 net acres in July (OGJ Online, July 13, 2011).

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