Tallgrass Energy LP (NYSE: TGE) and Silver Creek Midstream LLC on July 10 announced a binding open season soliciting additional shipper commitments for Niobrara (API 34 – 42) crude oil transportation service on the Iron Horse Pipeline.
The system is designed to add additional grades of crude oil as necessary.
Iron Horse, which has secured a 10-year producer-supported committed transportation contract for 15,000 bbl/d, is under construction and currently expected to start commercial operations by Feb. 1, 2019, with an initial capacity of approximately 100,000 bbl/d that is expandable to approximately 200,000 bbl/d. The Iron Horse Pipeline is not dependent upon the results of this open season to begin commercial operations.
Iron Horse is a joint venture between Tallgrass and Silver Creek to transport crude oil from the growing Powder River Basin to the Guernsey, Wyo., oil hub. The approximately 80-mile, 16-inch Iron Horse pipeline will consist of 40 miles of new-build and 40 miles of gas-to-oil conversion pipe. At Guernsey, shippers will have access to 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 the fourth quarter of 2018.
The approximately 250-mile Silver Creek Gathering System is also currently under construction and the company has secured multiple long-term commitments for crude oil gathering and transportation services. The System’s 16-inch trunkline is expected to have an initial capacity of approximately 100,000 bbl/d and is expandable up to 200,000 bbl/d and will connect to the Iron Horse Pipeline at Silver Creek’s Midway Terminal in Converse County. The Silver Creek Gathering System is expected to be in service by Feb. 1, 2019.
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