Tallgrass Energy Wednesday announced the Hereford Project, roughly 30 miles of new pipeline, plus expanded capacity on the Pony Express system, Kallanish Energy reports.
The new project is designed to support crude oil production in northern Weld County, Colorado, near the Wyoming-Colorado border.
Sufficient interest arose during Pony Express’ existing open season for expansion capacity from origin points in Colorado and Wyoming to destinations along the system to justify the Hereford Project as a stand-alone project, Kansas-based Tallgrass said.
The Hereford Lateral will connect crude oil gathering facilities and/or terminal facilities near Hereford, Colorado, with existing Pony Express facilities located near the Pawnee origin facility in Weld County.
Pony Express expects the Hereford Lateral to be in-service by July, and the expansion capacity on the existing Pony Express system to be online by May 2020 – both ahead of the larger Pony Express system expansion announced Jan. 22, 2019.
The big Pony Express expansion is an agreement between Tallgrass and Kinder Morgan to jointly develop crude oil takeaway capacity in the Powder River and Denver-Julesburg basins, and to add capacity to the Williston Basin and portions of Western Canada.
Tallgrass is contributing the Pony Express system, and KM would contribute portions of its Wyoming Intrastate Co. and Cheyenne Plains Gas Pipeline. Kinder Morgan also would begin the process of converting both pipeline systems to crude oil service from flowing natural gas.
In addition, roughly 200 miles of new pipeline would be constructed to provide crude oil deliveries into Cushing, Oklahoma.
Pony Express is launching a limited open season to allow interested parties to commit to the Hereford Project. The open season will run from May 1, to May 15.
This post appeared first on Kallanish Energy News.