July 2012, Vol. 239 No. 7

Projects

Kinder Morgans Open Season News

Kinder Morgan Pony Express Pipeline LLC, a subsidiary of Kinder Morgan Interstate Gas Transmission LLC, and Belle Fourche Pipeline Co. held an open season to solicit shipper interest for crude oil transportation service on the Pony Express pipeline from a point near Baker, MT to delivery points at Ponca City and Cushing, OK.

The companies expect the pipeline to transport 100,000 bpd of oil under a joint tariff beginning in late 2014 and have secured a long-term commitment with a major anchor shipper for a minimum of 30,000 bpd to commence at startup.

Those interested in reviewing the details of the proposed service may contact John Eagleton at Kinder Morgan Pony Express at (303) 914-4702.

In separate open seasons, Pony Express will offer single pipeline oil transportation service from the Guernsey, WY area and from the Denver-Julesburg Basin to the Oklahoma destinations mentioned above and additional oil transportation service under a separate joint tariff to the same delivery points. Information about the additional Pony Express oil transportation services may be obtained through the Kinder Morgan contact listed above.

In other news, Kinder Morgan Energy Partners announced shippers have signed binding 20-year contracts for 510,000 bpd of capacity in support of expanding the 1,150-kmTrans Mountain pipeline system. Based on these finalized commitments, the proposed expansion will increase capacity on Trans Mountain from 300,000 bpd to about 750,000 bpd at a projected cost of $4.1 billion.

The project will continue with consultations and regulatory application preparation as previously announced. For almost 60 years, the pipeline system has been providing the only west coast access for Canadian oil products, including about 90% of the gasoline supplied to the interior and south coast of British Columbia.