Kinder Morgan launches Pony Express oil pipeline open season

Kinder Morgan Pony Express Pipeline LLC, a subsidiary of Kinder Morgan Interstate Gas Transmission LLC, and Belle Fourche Pipeline Co. have launched an open season to solicit shipper interest for crude oil transportation service on the Pony Express pipeline from a point near Baker, Mont., to Ponca City and Cushing, Okla. The companies expect the pipeline to transport about 100,000 b/d of oil under a joint tariff beginning fourth-quarter 2014 and have secured a long-term commitment with a major anchor shipper for a minimum of 30,000 b/d at startup.

In separate open seasons, Pony Express will offer single-pipeline oil transportation service from the Guernsey, Wyo., area and the Denver-Julesburg basin to Ponca City and Cushing, and additional oil transportation service under a separate joint tariff to the same delivery points.

Pony Express 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 Kansas and Oklahoma. It will also include interconnects with the Platte Pipeline and the Bridger-Butte Pipeline.

Kinder Morgan held an open season on Pony Express last year, describing the capacity of the pipeline as up to 210,000 b/d (OGJ Online, Sept. 12, 2011).

Contact Christopher E. Smith at chriss@ogjonline.com.

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