Pony Express Pipeline LLC, a subsidiary of Kinder Morgan Interstate Gas Transmission LLC, has received sufficient binding shipper commitments during its recent open season to move forward with its Pony Express Oil Project. The line will deliver crude oil from receipt points near Guernsey, Wyo., to the Phillips 66 Ponca City, Okla., refinery as well as to Cushing, Okla.
The project involves converting 430 miles of existing pipeline from natural gas to oil service, and constructing a 260-mile pipeline extension from the existing pipeline to Ponca City and Cushing.
KMIGT expects the 220,000 b/d pipeline to enter service third-quarter 2014.
Prior to the open season KMIGT secured a long-term commitment with a major anchor shipper for a minimum of 30,000 b/d at start-up. Initial plans for Pony Express also included interconnects with the Platte Pipeline and Bridger-Butte Pipeline.
KMIGT is one of the assets Kinder Morgan Inc. agreed to divest to receive regulatory approval of its acquisition of El Paso Corp (OGJ Online, June 20, 2012). KMIGT closed on its El Paso acquisition in May and expects to complete divestiture in the third quarter.
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