Pony Express Pipeline Launches Open Season For Transportation Services


Tallgrass Pony Express Pipeline LLC announced a binding tender on March 31 to solicit commitments from shippers to transport crude oil.

Pony Express is a subsidiary of Tallgrass Energy LP. The company is seeking commitments to transport crude oil from Pony Express’s Guernsey, Platteville and Buckingham origins to destinations in Cushing, Oklahoma, in exchange for volume incentive tariff rates.

Potential shippers can view the details of the tender after signing a secured confidentiality agreement by contacting Matt Hester at [email protected]

The approximately 830-mile Pony Express (PXP) crude oil pipeline originates in Guernsey, Wyoming, and crosses Colorado, Nebraska and Kansas, connecting to three refineries before terminating in Cushing. Cushing is the hub for crude oil in North America and a key trading and pricing point for the NYMEX WTI. PXP sources oil from the Bakken, Denver Julesburg and Powder River areas, providing five separate common streams to our customers – Bakken Light Sweet, Mixed Sweet, Niobrara, Pony Express Light and Central Kansas Uplift – to the Cushing oil hub for distribution to markets across the country. Commissioned in 2014, Pony Express has the capacity to transport approximately 400,000 barrels per day (bpd).

Responding to producers’ call for more pipeline capacity outside of Bakken, Tallgrass built PXP and signed joint tariff agreements with two other pipelines to seamlessly move Bakken crude to Cushing and intermediate points.

To meet the transportation needs of producers in the Bakken and Rocky Mountain regions, Tallgrass converted a 430-mile pipeline and built another 260-mile pipeline to extend PXP through southern Kansas to Oklahoma. The 70-mile Northeast Colorado Lateral (NECL) adds an option for producers of the Niobrara Shale in northeastern Colorado and southeastern Wyoming, cutting Pony Express east of Sterling, Colorado. Before ending in Cushing, PXP connects to the Holly Frontier and CHS McPherson refinery complexes in Kansas and the Ponca City, Oklahoma, Phillips 66 refinery.

Tags: Season opening, Pony Express Pipeline, Tallgrass Energy


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