Kinder Morgan Inc. (NYSE: KMI) has begun to receive Powder River Basin volumes into its Double H pipeline system via a newly constructed connection near Douglas, Wyoming, for crude oil deliveries to Guernsey, Wyoming, increasing its system capacity to approximately 99,000 barrels per day.
The Powder River Basin project is the result of an open season held earlier this year on the local Double H pipeline and the joint Hiland/Pony Express systems, which resulted in additional commitments to the Double H pipeline from sources in North Dakota and Wyoming.
Kinder Morgan’s Double H pipeline is supplied by the Market Center Gathering system in the Bakken shale play and terminates near Guernsey. The 485-mile pipeline transports crude oil from the Dore Terminal in North Dakota and the Albin Terminal in Montana to Guernsey. At Guernsey, Double H anticipates placing delivery connections to the Plains All American Pipeline, Guernsey Station, and Sinclair Guernsey Terminal into service in the third quarter of 2015 to provide increased connectivity to local and regional markets. Shippers also have access via an interconnect with the Pony Express Pipeline for transportation to the Phillips 66 refinery in Ponca City, Oklahoma, or the Deeprock Terminal in Cushing, Oklahoma. Double H was placed in service in February.