Tallgrass Energy Partners plans to develop a crude oil storage terminal following an agreement with Saddle Butte Pipeline.
The facility will be situated in the heart of the Platteville, Colorado oil terminal complex and will interconnect with Saddle Butte's Denver-Julesburg Basin crude oil gathering system.
It is expected that the terminal will serve as a new pipeline origin for the Pony Express Platteville Extension. The extension is expected to have an ultimate takeaway capacity of at least 80,000 barrels of crude oil per day and is expected to be in service by the second quarter of 2018.
Tallgrass Terminals will wholly own and operate the new facility when it is completed. Consistent with the Pony Express Pipeline's current operations, the Tallgrass Grasslands Terminal will offer batching service for several common streams sourced from multiple gathering system interconnects.
Doug Johnson, vice president and general manager of Tallgrass Pony Express Pipeline, says: 'The proposed Platteville Extension and Tallgrass Grasslands Terminal, together with our existing Buckingham Terminal and Northeast Colorado Lateral, give Pony Express and Tallgrass Terminals an unrivalled footprint in the Denver-Julesburg area and provide meaningful benefits to producers.
'Via its direct connections to refineries and six final-destination terminals in Cushing, Pony Express provides customers a broad range of delivery options and improved netbacks versus other alternative transport options.'
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