Tallgrass Energy has announced an open season for the Seahorse Pipeline to invite binding shipper commitments for crude oil transportation service on the new pipeline in the US.
Image: Pipeline system. Photo: courtesy of supakitmod/Freedigitalphotos.net.
The proposed Seahorse Pipeline is expected to be 30 inches in diameter and approximately 700 miles long, with the capacity to transport up to 800,000 barrels of crude oil per day from the Cushing oil hub to the Louisiana Gulf Coast.
The pipeline will operate as a multi-grade common batch system that, along with Tallgrass’ Pony Express Pipeline, will ensure domestic refiners and international markets have access to “neat” barrels from five different production basins. Seahorse is expected to start commercial operations in the third quarter of 2021.
In addition, to accommodate shipper interest and continued growth in the Powder River, Denver-Julesburg and Bakken producing regions, Tallgrass expects to complete pump optimization projects to expand capacity on its Pony Express Pipeline to enable it to transport up to 400,000 barrels per day by the end of the year.
If shipper interest exceeds that added capacity, Tallgrass may expand the Pony Express Pipeline further through potential additional horsepower and/or looping to facilitate large-scale movements from Guernsey and northeast Colorado.
The Seahorse open season runs through Oct. 1.
Project investment is dependent upon obtaining satisfactory customer interest and receiving applicable state and federal permits, among other factors.
Source: Company Press Release