Kinder Morgan Energy Partners recently held a binding open season for available capacity on a proposed crude oil pipeline from Guernsey, WY to Cushing, OK called the Kinder Morgan Pony Express Pipeline LLC.
The project would be a conversion of approximately 500 miles of part of the Kinder Morgan Interstate Gas Pipeline system plus a 210 mile green field extension from central Kansas to Cushing. The 710 -mile pipeline would provide up to 210,000 bpd of light crude that may be received from various sources near Guernsey, WY, including interconnects with the Platte Pipeline and the Bridger-Butte Pipeline, as well as a potential new receipt point in the DJ Basin/Niobrara area in northeastern Colorado.
The pipeline would offer shippers greater access to Cushing from several different production areas, while providing refiners with a reliable, source of crude oil.
During the binding open commitment period, which began Sept. 8, 2011 and will continue until Oct. 13, 2011, interested shippers have the opportunity to execute a firm Transportation Services Agreement to reserve capacity on the new pipeline. Subject to customer commitments and required approvals, the project is expected to begin service in the first quarter of 2014.