Tallgrass Development has offered Tallgrass Energy Partners (TEP) the right to acquire a 33.3% stake in Tallgrass Pony Express Pipeline (Pony Express).
If completed, the offer will increase TEP’s stake in the pipeline to 66.7%. It is subject to approval from the Federal Trade Commission.
Terms of the offer, which have not been finalised, are expected be changed after completion of the ongoing open seasons for the expansion of the Pony Express crude oil pipeline system.
Pony Express owns around 690 miles of crude oil pipeline starting in Guernsey, Wyoming, and terminating in Cushing, Oklahoma.
Delivery points are at the Ponca City Refinery and at Deeprock in Cushing.
After completion of ongoing construction, Pony Express will own a 66-mile lateral in north-east Colorado that will start in Weld County, Colorado, and interconnect with the Pony Express mainline just east of Sterling.
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By GlobalDataThe lateral in north-east Colorado is anticipated to start service in the first half of 2015.
Pony Express is currently undergoing open seasons to seek commitments for incremental crude oil transportation service estimated to start operations in the second half of 2016.
Interim capacity of around 100,000bpd will be available starting in mid-2015.
TEP is a limited partnership that has been established to own, operate, acquire and develop midstream energy assets in North America.
The company currently delivers natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the US via its Tallgrass Interstate Gas Transmission and Trailblazer Pipeline systems.
Image: If completed, the offer will increase TEP’s stake in Tallgrass Pony Express Pipeline to 66.7%. Photo: courtesy of puttsk / FreeDigitalPhotos.net.
