Kinder Morgan, Tallgrass plan to expand Bakken crude takeaway

By Luke Geiver | July 01, 2019

Kinder Morgan Inc. (KMI) and Tallgrass Energy have announced a new plan to move additional Bakken crude out of western North Dakota. Hiland Crude LLC, a subsidiary of KMI, and Tallgrass Pony Express Pipeline LLC, will open a joint tariff season from commitments from shippers along the Pony Express. The Pony Express originates in western North Dakota, flows to Wyoming and then reaches Cushing, Oklahoma.

Details of the expansion were not made public yet. The Hiland Crude pipeline system can currently move roughly 88,000 barrels of crude per day from multiple points in North Dakota. The line takes the crude to Guernsey, Wyoming. From there, the crude is moved via the Pony Express system capable of flowing 375,000 barrels of oil per day. The system also connects to three refineries along the way. The open season call for shippers looking to get on the pipeline expansion project closes on July 28.

This year, several new Bakken pipeline projects have been announced. The projects are all designed to move crude out of the Williston Basin and south to Cushing or other locations that could eventually end up along the U.S. Gulf Coast.

Philadelphia Energy Solutions refinery, which recently underwent a major fire event, is seeking to close its operations. For multiple years, Bakken producers have shipped crude east to the refinery.