NEW YORK, July 29 Line fill on the Pony Express
Pipeline carrying crude from Wyoming to Oklahoma began last week
although commercial shipments are expected to be delayed until
the fourth quarter, market sources said on Tuesday.
The 230,000-barrel-per-day (bpd) pipeline, which was
originally set to start up in August, has been pushed back by
several months, two trading sources said. They indicated that
the majority of shipments was now expected to start for October.
Line fill on the pipeline was first reported by Genscape,
which said it would take 25-40 days to fill with a total of 2
million barrels at a rate of 50,000-80,000 bpd.
The company did not reply to calls and e-mails for comment.
In an earnings call in May, Tallgrass Energy Chief Executive
David Dehaemers said the company's timeline to start up Pony
Express was August, although it could be in service in September
or even the fourth quarter.
Pony Express, operated by Tallgrass Energy Partners LP
, includes a 430-mile converted natural gas pipeline and
a new 260-mile line that will carry light crude in North
Dakota's Bakken shale plays from Guernsey, Wyoming, into
Cushing, Oklahoma. The new extension moves oil from Lincoln
County, Kansas to Payne County, Oklahoma.
Traders say that once the pipeline starts up, it will mean
an increase of stock in Cushing, Oklahoma, the delivery point
for the West Texas Intermediate contract. Cushing stock
fell below 20 million barrels earlier this month, the first time
in six years, data from the U.S. Energy Information
(Reporting by Catherine Ngai; Editing by Richard Chang)