Update On The Pony Express Pipeline

Updates

November 30, 2015: Tallgrass Energy Partners increases its revolving credit facility from $850 million to $1.1 billion: The firm has increased its revolving credit facility from $850 million to $1.1 billion, and has an option to further increase the revolving credit facility by up to an additional $400 million of commitments to $1.5 billion. As of Sept. 30, 2015, TEP had $696 million drawn on its revolving credit facility.

September 25, 2014: Tallgrass pipeline system might expand. 

September 13, 2013: FERC approval; progress continues.  

The abandonment encompasses an approximately 430-mile section of natural gas pipeline from Guernsey, Wyoming to Lincoln County, Kansas, which is currently part of the Tallgrass Interstate Gas Transmission system.

Once the abandonment is complete, the 430-mile section of pipe will be converted and sold to a subsidiary of Tallgrass Development, LP. In conjunction with the conversion, Tallgrass Development, LP is also constructing a 260-mile extension from Lincoln County, Kansas to Cushing, Oklahoma. Upon completion of the conversion, transfer and new construction, the 690-mile Tallgrass Pony Express Pipeline (a subsidiary of Tallgrass Development, LP) will transport domestic light crude from the Bakken Shale, Denver-Julesburg and surrounding areas to Cushing, Oklahoma. “This is an important step in the process of the development of a key asset for Tallgrass and we are very pleased to have received the order from the FERC,” said Tallgrass’ President and CEO David Dehaemers. “We will continue to move forward with the project and currently expect the pipeline to begin transporting crude in the third quarter of 2014.”

Original Post

A reader sent me an update on the Tallgrass Pony Express Pipeline.

Here are my earlier notes on this pipeline (I track pipelines of interest here) so this article is a nice update.

My notes:

Tallgrass Energy Partners

Pony Express Pipeline

Unofficial "Go-By" Name:

Announced: ? -- in conjunction with the "Double H" pipeline (April, 2013)

Originator: Tallgrass Pony Express Pipeline, LLC

Pipeline: natural gas pipeline being retrofitted to carry crude oil; 260-mile new pipeline (KS to OK)

Specs: 24" 

Origin: Guernsey, Wyoming

Terminus: Cushing, Oklahoma

Length:

Capacity: 230K to 320K

Comments: will transport Bakken oil to Cushing, Oklahoma; announced about same time as "Double H": at time of announcement, approval of the Keystone XL permit was still questionable;

Concerns:
Status: