Kinder Morgan Inc., through its subsidiary Hiland Crude, LLC (Hiland Crude), and Tallgrass Energy, LP, through its subsidiary Tallgrass Pony Express Pipeline LLC (Pony Express), on June 28 announced the start of a binding joint tariff open season to solicit commitments for crude oil transportation service from Bakken origin points on the Hiland Crude system to refinery delivery points along the Pony Express system and to Cushing, Okla.
The Hiland Crude system is currently capable of moving about 88,000 barrels per day (bbl/d) from Bakken origin points to Guernsey, Wyo. The Pony Express system is currently capable of moving approximately 375,000 bbl/d from Guernsey to Cushing, connecting to three refineries along the way.
Additional documents and details related to the open season will be made available upon completion of a confidentiality agreement. The binding open season began at 4 p.m. on June 28 and ended about an hour later.
Those interested in obtaining more detailed information about this open season can visit the Kinder Morgan website at www.kindermorgan.com, contact Dwaine Shroyer, vice president of business development in Kinder Morgan’s Products Pipelines group, at email@example.com or (918) 588-5074, or call Kyle Quackenbush at 303.763.3319 or Andrew DiPaolo at 918.588.5074 with Tallgrass Energy.
The company plans to spend $10 million on the project this year, and has contracts to start transporting 75,000 bbl/d for up to three years, Kinder Morgan CEO Steven Kean told investors.
Under the agreement, Bison will exclusively manage all of Marathon's produced water infrastructure, as well as any future acreage operated by Marathon within a 5.4 million acre dedicated area.
The open season is to solicit additional shipper commitments for transportation service from the Bakken/Three Forks play in North Dakota to storage terminals located in Illinois and Texas.