Tallgrass Energy and Silver Creek Midstream expand joint venture in pipeline to transport crude oil to Wyoming, US.
The expanded JV will own the 129 km, 16 inch (407 mm) diameter Iron Horse Pipeline, which is currently under construction; the 113 km, 12 inch (305 mm) diameter Powder River Express Pipeline; and crude oil facilities in Guernsey, Wyoming.
Through these two pipelines, PRB produced crude oil will have access to Tallgrass’ Pony Express crude oil pipeline system, a well as two other existing takeaway pipelines.
Iron Horse will have an initial capacity of approximately 100,000 bbl/d, with the capacity to expand to up to 200,000 bbl/d and is expected to be in-service in 2019, while Powder River Express Pipeline has a current capacity of 90,000 bbl/d, which will expand to up to 125,000 bbl/d.
In late 2018, Silver Creek plans to upgrade its existing 193 km pipeline network, developing the gathering and trunkline infrastructure by adding an additional 84 km of crude pipelines and 100,000 or more barrels of extra storage.
Tallgrass is also developing its Seahorse Pipeline and Plaquemines Liquids Terminal projects, which will provide extensive downstream market access for PRB producers.
The JV intends to create joint tariffs with both Pony Express and Seahorse, providing Iron Horse and PRE shippers with seamless transportation from Silver Creek’s Pronghorn Terminal export markets in Oklahoma and Louisiana.
Through the Plaquemines Liquids Terminal, more than 3 million bbl/d of refining demand will be directly connected to Pony Express or Seahorse.
The PRB JV is split between Tallgrass (51 per cent, owner and operator) and Silver Creek (49 per cent).
For more information visit the Tallgrass website.
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