July 29, 2014 / 9:30 PM / 3 years ago

Pony Express oil pipe line-fill starts; shipments seen in Oct.

NEW YORK, July 29 (Reuters) - 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 Administration showed. (Reporting by Catherine Ngai; Editing by Richard Chang)

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