The offer, which is subject to approval from the Federal Trade Commission, is expected to enhance TEP’s stake in the pipeline to 66.7%.
Terms of the offer will be changed following completion of the ongoing open seasons for the expansion of the Pony Express crude oil pipeline system.
Pony Express owns about 690-mile crude oil pipeline, which starts in Guernsey, Wyoming, and terminates in Cushing, Oklahoma with delivery points at the Ponca City Refinery and at Deeprock in Cushing.
Following completion of ongoing construction, Pony Express also will own an approximately 66-mile lateral in northeast Colorado that will start in Weld County, Colorado, and interconnect with the Pony Express mainline just east of Sterling.
The lateral in northeast Colorado is anticipated to start service in the first half of 2015.
Pony Express is presently undergoing open seasons to seek commitments for incremental crude oil transportation service estimated to start operations in the second half of 2016.
