Tallgrass Energy Partners, through its subsidiaries, has entered an agreement with Saddle Butte Pipeline to develop the Tallgrass Grasslands terminal in the US.
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Located in the Platteville, Colorado oil terminal complex, the terminal will interconnect with Saddle Butte’s Denver-Julesburg Basin crude oil gathering system.
Subject to the successful conclusion of the Pony Express Pipeline’s recently announced open season, the terminal will serve as a new pipeline origin for the Pony Express Platteville extension.
The extension has a projected takeaway capacity of at least 80,000 barrels of crude oil per day and is slated for operational readiness in the second quarter of next year.
Tallgrass Pony Express Pipeline vice-president and general manager Doug Johnson said: “The proposed Platteville extension and Tallgrass Grasslands terminal, together with our existing Buckingham terminal and north-east Colorado lateral, give Pony Express and Tallgrass Terminals an unrivalled footprint in the D-J and provide meaningful benefits to producers.
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By GlobalData“Via its direct connections to refineries and six final-destination terminals in Cushing, Pony Express provides customers with a broad range of delivery options and improved netbacks versus other alternative transport options.”
Saddle Butte’s Milton Terminal will also act as an origin point for Pony Express.
As a result, Pony Express will be able to offer direct refinery and Cushing terminal connections to Saddle Butte’s customers in the near future while the Tallgrass Grasslands terminal is developed.
Even after the completion of the proposed terminal, the Milton Terminal will continue as an origin point when the terminal is operational.
Upon completion, the Tallgrass Grasslands Terminal will be owned and operated by Tallgrass Terminals.
It will provide batching service for several common streams procured from multiple gathering system interconnects.
Tallgrass is a midstream energy operator with transportation, storage, terminal and processing assets serving crude oil and natural gas basins.
Image: The Pony Express Platteville extension is expected to have a takeaway capacity of at least 80,000 barrels of crude oil per day. Photo: courtesy of Dani Simmonds/Freeimages.com.
