JP Energy to build oil pipeline to Cushing from Kansas
BY ROD WALTON World Staff Writer
Wednesday, January 16, 2013
1/16/13 at 6:51 AM
A metro Dallas company announced plans Tuesday to build a pipeline that will bring crude oil from the Kansas portion of the Mississippi Lime formation south to the Cushing storage hub by next year.
JP Energy Development said it signed a 15-year agreement with Tug Hill Operating, which will move oil from south-central Kansas on the Kansas Express pipeline. Construction is expected to begin in the first quarter, with completion by next January.
The Kansas Express will have capacity to take on other production and relieve the strain on getting oil out of the prolific Mississippi Lime.
"This is a significant development for oil producers in northern Oklahoma and Kansas who will have additional means to move their product to market quickly and efficiently," said J. Patrick Barley, president and CEO of JP Energy Partners, the Irving, Texas-based parent company.
The Kansas Express will be JP Energy's second pipeline in the Mississippi Lime. The geologic formation is a relatively shallow limestone play rich in liquid hydrocarbons.
Tug Hill holds leases on more than 800,000 acres in the Mississippi Lime.
Pipeline capacity will replace the need to move crude on trucks.
"The new pipeline provides Tug Hill Operating access to the Cushing market and limits the number of trucks on Kansas roads," Tug Hill CEO Michael Radler said in a statement.
He also praised JP Energy's track record on transporting crude.
"They are our preferred pipeline company, and we hope other Kansas producers will find opportunities to use them as well," Radler said.
JP Energy Development also owns and operates the Great Salt Plains Pipeline, which went into service three months ago. The pipeline moves crude from Cherokee, Okla., to Cushing.
Original Print Headline: Pipeline to bring crude to Cushing
Rod Walton 918-581-8457