Tallgrass Energy, Silver Creek Midstream Set Iron Horse Pipeline Open Season

Tallgrass Energy and Silver Creek Midstream, began a binding open season for additional shipper commitments for Niobrara crude oil transportation service on the Iron Horse Pipeline. The system is designed to add grades of crude oil, as necessary.

Iron Horse, which has secured a 10-year producer-supported committed transportation contract for 15,000 bpd, is under construction and currently expected to start commercial operations by Feb. 1, 2019, with an initial capacity of 100,000 bpd, expandable to 200,000 bpd. The Iron Horse Pipeline is not dependent upon the results of this open season to begin commercial operations.

Iron Horse is a joint venture between Tallgrass and Silver Creek to transport crude oil from the growing Powder River Basin to the Guernsey, Wyo., oil hub. The 80-mile, 16-inch Iron Horse pipeline will consist of 40 miles of new-build and 40 miles of gas-to-oil conversion pipe. At Guernsey, shippers will have access to the Tallgrass Pony Express Pipeline and other pipelines accessible through Tallgrass Terminals’ Guernsey Terminal, which is under construction and expected to start commercial operations in the fourth quarter of 2018.

The approximately 250-mile Silver Creek Gathering System is also currently under construction and the company has secured multiple long-term commitments for crude oil gathering and transportation services.

The System’s 16-inch trunkline is expected to have an initial capacity of 100,000 bpd and is expandable up to 200,000 bpd and will connect to the Iron Horse Pipeline at Silver Creek’s Midway Terminal in Converse County. The Silver Creek Gathering System is expected to be in service by Feb. 1, 2019.

The Iron Horse open season runs through Aug. 17.

Related News


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}