Tallgrass Energy Partners, LP has announced that Continental Resources, Inc. exercised its contractual right to extend its Throughput and Deficiency Agreements (TDAs) to ship crude oil with Belle Fourche Pipeline Company and with TEP’s subsidiary, Tallgrass Pony Express Pipeline, LLC, through 31 October 2024. The TDAs were previously scheduled to expire on 31 October 2019.
“This is a unique, mutually beneficial opportunity in the current environment to extend Pony Express’s relationship with its largest customer, secure highly desired Bakken crude oil volumes well past our existing contract maturities, and help provide cash flow certainty for Pony Express,” said David G. Dehaemers Jr., President and CEO of Tallgrass Energy. “Pony Express is capable of transporting approximately 400 000 bpd, and has just over 300 000 bpd currently contracted. This extension fills a portion of the pipeline’s available capacity from the Bakken and for a term of five years beyond the initial contract term, solidifying Pony Express’s long-term position in the crude oil transportation market.”
On 1 January 2018, new uncommitted rates on the joint tariff of BFPL, Pony Express and Bridger Pipeline, LLC were established, resulting in certain committed rates on the joint tariff being adjusted on the same date. These joint tariff committed rates will initially be US$3.75/bbl for Williston basin origin points and US$2.86/bbl for Guernsey (Wyoming) origin points on Pony Express.
“We are pleased to extend our long standing transportation relationship with Pony Express and Belle Fourche,” said Harold Hamm, Chairman and CEO of Continental Resources. “It provides a premier takeaway solution for our Bakken production when considering operational reliability, access to significant refining markets and, of course, access to storage and pipeline connectivity at Cushing. In addition, the extension will facilitate further improvements in the economics of our operations in the Bakken, the nation’s premier onshore oil play.”
"Belle Fourche is pleased to extend our long-standing relationship with one of the premier producers in the Williston Basin," said Hank True, President of BFPL. "With this extension, we will continue to build out much needed infrastructure that will provide stability in transportation and markets for all involved."
Read the article online at: https://www.worldpipelines.com/business-news/02012018/tallgrass-energy-partners-announces-continental-resources-contract-extension/