Tallgrass Energy’s Pony Express Conversion

May 2013, Vol. 240, No. 5

Work is set to start this summer on Tallgrass Energy Partners’ Pony Express Pipeline expansion. The pipeline will be comprised of a converted portion of an existing natural gas pipeline and new construction.

Tallgrass Energy acquired Pony Express Pipeline in 2012 from Kinder Morgan (KM) as part of a deal by KM with U.S. antitrust regulators to acquire the El Paso Corp. Assets included KM’s 50% interest in the Rockies Express plus the company’s Interstate Gas Transmission; Trailblazer Pipeline Co.; the Casper-Douglas gas processing and West Frenchie Draw treating facilities in Wyoming.

At the time of purchase, KM had announced plans to convert its Pony Express line from natural gas to crude oil service. Tallgrass is continuing with KM’s plan to convert the pipeline and indicated the first half of 2014 for completion.

Once completed, the Pony Express line will include a converted portion of the existing 500-mile natural gas pipeline and a 260-mile, 24-inch extension from Lincoln County KS to Payne County, OK. The 700+ mile pipeline will transport between 230,000-302,000 bpd of light sweet crude found in the Bakken production area of North Dakota and Cushing, OK.
Tallgrass is owned by Energy & Minerals Group, Kelso & Co. and the management team of Tallgrass, including Chief Executive David Dehaemers.