Tallgrass files contract tariffs for Pony Express
Tallgrass Energy Partners LP submitted contract tariffs on Wednesday for its Pony Express crude oil pipeline effective Nov. 1, according to a regulatory filing with the Federal Energy Regulatory Commission.
The rates concern crude moving on the highly anticipated 230,000 barrel-per-day line from Guernsey, Wyoming to several destinations within Oklahoma. The rates come more than a month after Tallgrass submitted tariffs for non-contract shippers.
Shippers sending a daily average of between 0 to 29,999 barrels in a month will pay $3.75 a barrel, while shippers sending more than 30,000 daily barrels per month will be charged $3.30 a barrel, the filing added.
Traders and analysts have previously pointed out that the startup of Pony Express coupled with the 600,000 bpd Flanagan South pipeline in the fourth quarter would mean a large build for crude stocks in Cushing, Oklahoma, the delivery point for the U.S. crude futures contract.
Earlier this month, Tallgrass said that line fill for the pipeline was complete and that Pony Express had started commercial service. Market participants, however, said that even with commercial service, the pipeline would carry less oil than expected for October and November.
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