Tallgrass Energy, LP and Silver Creek Midstream, LLC today 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 bpd, is under construction and currently expected to start commercial operations by 1 February 2019, with an initial capacity of approximately 100 000 bpd that is expandable to approximately 200 000 bpd. 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, Wyoming, oil hub. The approximately 80 mile, 16 in. 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 4Q18.
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 in. trunkline is expected to have an initial capacity of approximately 100 000 bpd and is expandable up to 200 000 bpd 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 1 February 2019.
The Iron Horse open season runs through 17 August 2018. Interested parties may review details of the open season after executing a confidentiality agreement obtained by contacting Tallgrass representatives.
Read the article online at: https://www.worldpipelines.com/business-news/10072018/iron-horse-pipeline-open-season-announced/