Kinder Morgan Inc. (KMI) has begun receiving Powder River basin crude oil into its Double H pipeline system via a newly constructed connection near Douglas, Wyo., increasing system capacity to about 99,000 b/d. KMI said further expansion is possible as the Bakken shale and Power River basin grow.
The Market Center Gathering system in the Bakken supplies the 485-mile Double H, which runs from the Dore terminal in North Dakota and the Albin terminal in Montana to Guernsey. At Guernsey, KMI expects to put delivery connections to Plains All American Pipeline’s Guernsey station and Sinclair Guernsey terminal into service later this quarter, increasing connectivity to local and regional markets.
Shippers also have access via an interconnect with the Pony Express Pipeline for transportation to Phillips 66’s Ponca City, Okla., refinery or the Deeprock terminal in Cushing, Okla. Double H began service in February.
The Powder River basin project stems from an open season held earlier this year.
KMI in January acquired Hiland Partners and its Double H pipeline (OGJ Online, Jan. 22, 2015).