Tallgrass to Expand Pony Express Oil Pipeline Capacity by 70,000 bpd

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NEW YORK (Reuters) – Tallgrass Energy submitted a petition to U.S. energy regulators to expand capacity on its 400,000-bpd Pony Express crude pipeline, that flows from Guernsey, Wyoming to Cushing, Okla., by about 70,000 bpd.

Once in service, the expansion will increase capacity to move crude from the Bakken and Powder River basins for delivery to the Cushing oil hub, Tallgrass said in a filing with U.S. Federal Energy Regulatory Commission (FERC).

Of the new capacity, 15,000 bpd was made available to committed shippers in a recent open season, with 2,000 bpd of new capacity available for spot shipments, Tallgrass said.

The Pony Express expansion will provide capacity to relieve existing constraints that will intensify with the U.S. Energy Information Administration’s (EIA) predicted production increases for the Bakken region.

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