Tallgrass Energy LP, Leawood, Kan., and Silver Creek Midstream LLC, Irving, Tex., launched a binding open season soliciting additional shipper commitments for Niobrara (API 34°– 42°) crude oil transportation service on the Iron Horse Pipeline (OGJ Online, Feb. 8, 2018). The system is designed to add additional grades of crude oil as necessary.
Iron Horse, which has secured a 10-yr producer-supported committed transportation contract for 15,000 b/d, is under construction. Commercial operations are expected by Feb. 1, 2019, with an initial capacity of 100,000 b/d, expandable to 200,000 b/d. Iron Horse is not dependent upon the results of the open season to begin commercial operations, the company said.
Iron Horse is a joint venture between Tallgrass and Silver Creek to transport crude oil from the Powder River Basin to the Guernsey, Wyo., oil hub. The 80-mile, 16-in. It will consist of 40 miles of new-build and 40 miles of gas-to-oil conversion pipe. At Guernsey, shippers can access the Tallgrass Pony Express Pipeline and other pipelines accessible through Tallgrass Terminals’ Guernsey Terminal, which is under construction and expected to start commercial operations in this year’s fourth quarter.
The 250-mile Silver Creek Gathering System is also currently under construction. Multiple long-term commitments for crude oil gathering and transportation services have been secured. The system’s 16-in. trunkline is expected to have an initial capacity of 100,000 b/d and is expandable up to 200,000 b/d and will connect to the Iron Horse Pipeline at Silver Creek’s Midway Terminal in Converse County. It is expected to be in service by Feb. 1, 2019.
The Iron Horse open season runs through Aug. 17, 2018.
