Hiland Crude LLC has launched an open season to solicit shipper commitments to expanded capacity of the company’s Double H crude oil transportation system, a 488-mile pipeline under construction.
An initial open season was held in 2012 for the base capacity. The facilities include the Hiland pipeline that originates in the Bakken oil production areas near Dore, ND, and Sydney, Mont., and terminates at Hiland’s tankage near Guernsey, Wyo.
Hiland would deliver oil into connecting pipelines near Guernsey. Interconnections near Guernsey will include the Tallgrass Pony Express pipeline and other proposed interconnections.
Initial start-up service on Double H pipeline will begin in late December and monthly nominations will be accepted for the month of January. The expansion will take place in phases with up to 45,000 b/d of interim capacity expected to be made available in first-half 2015.
Full capacity expansion including the installation of additional pump facilities and pipe expansions is expected to be completed by yearend 2016. Hiland says the expansion project is not reliant on any particular volume of new committed barrels. Final expansion design will be engineered based on the commitments received.