Tallgrass Energy, Silver Creek Midstream to expand Powder River Basin JV
Tallgrass Energy and Silver Creek Midstream announced that they have agreed to expand their Powder River Basin joint venture. The expanded Joint Venture, Powder River Gateway, LLC will own the Iron Horse Pipeline, the Powder River Express Pipeline, and crude oil terminal facilities in Guernsey, Wyo. Both Iron Horse and PRE will transport crude oil produced in the PRB from Silver Creek's Pronghorn Terminal to Guernsey, Wyo. where the crude oil has access to Tallgrass' Pony Express crude pipeline system and two other existing takeaway pipelines. Tallgrass will operate the Joint Venture and own 51% of Powder River Gateway; Silver Creek will own 49%. Iron Horse, an approximately 80-mile, 16-inch crude oil pipeline currently under construction, will have an initial capacity of approximately 100,000 barrels per day, is expandable up to 200,000 barrels per day and is expected to be in-service in Q1 2019. PRE is an approximately 70-mile, 12-inch crude oil pipeline, with a current capacity of 90,000 barrels per day expandable up to 125,000 barrels per day. The crude oil terminal facilities in Guernsey, Wyo. collectively own over 340 acres, include 370,000 barrels of crude storage currently in-service and, once fully constructed, will include over 1 million barrels of storage. Powder River Gateway has existing interconnections to Pony Express, two other takeaway pipeline connections, and has the ability to access any other current or future markets at Guernsey, Wyo.