Tallgrass Energy, the Kansas City-based midstream company with storage in Cushing, Oklahoma announced an open season this week for Niobrara crude oil transportation on its Iron Horse Pipeline.
Iron Horse is still under construction and the company anticipates the start of commercial operations by Feb. 1, 2019 with an initial capacity of nearly 100,000 barrels of crude a day. But it is also expandable to nearly 200,000 barrels per day.
Iron Horse is a joint venture between Tallgrass and Silver Creek of Irving, Texas to move crude from the growing Powder River Basin to the oil hub in Guernsey, Wyoming. The nearly 80-mile long, 1-inch pipeline will consist of 40-miles of new-build and 40-miles of gas-to-oil conversion pipe.
The 250-mile Silver Creek Gathering system is also currently under construction.