Tallgrass Energy and Silver Creek Midstream are expanding their Powder River Basin JC to include pipeline and storage assets.
The expanded JV, Power River Gateway, will own the Iron Hose Pipeline, the Powder River Express Pipeline and crude oil terminal facilities in Guernsey, Wyoming.
Both Iron Hose and PRE will transport crude oil produced in the PRB from Silver Creek's Pronghorn Terminal to Guernsey, Wyoming, where the crude oil has access to Tallgrass' Pony Express crude pipeline system and two other existing takeaway pipelines.
Tallgrass will operate the JV and owns 51% of the Gateway with Silver Creek owning the rest.
The storage facilities collectively own over 340 acres, include 370,000 barrels of crude storage currently in-service and, once fully constructed, will include over one million barrels of storage.
When combined with Silver Creek's existing assets, it will own and operate 120 miles of existing pipeline and have more than 330,000 acres dedicated from top Powder River Basin producers. The company will further develop the exiting gathering and trunkline infrastructure by an initial 52 miles and more than 100,000 barrels of additional storage.
Tallgrass, which owns and operates Pony Express and is developing both the Seahorse Pipeline and Plaquemines Liquids Terminal projects, provides extensive downstream market access for PRB producers. Powder River Gateway intends to create joint tariffs with both Pony Express and Seahorse.
Tallgrass is pursuing multiple expansion projects on Pony Express to meet the needs of growing PRB production, which will be staged over the next few years.
Silver Creek founder and CEO J. Patrick Barley says: 'Silver Creek is pleased to expand our relationship with Tallgrass in the PRB. Their current and growing long-haul crude transportation capabilities combined with Silver Creek's gathering and transportation assets in the PRB position Powder River Gateway to be the most efficient and flexible transportation and terminal facility in the PRB, offering access to all Guernsey downstream markets.'
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