According to a Reuters report posted Tuesday, South Bow Corp. and Bridger Pipeline LLC have plans to jointly develop a new crude oil pipeline from Guernsey, WY to Cushing, OK. Reuters cited a recent JP Morgan report that said the companies have acquired the right-of-way of the cancelled Liberty pipeline project, which was originally designed to move crude oil from the Rockies and Bakken regions to Cushing, OK.
This pipeline project would be the third leg of the Prairie Connector / Bridger system, that is also expected to see South Bow construct the Prairie Connector pipeline from Hardisty, AB to the Alberta-Montana border, and Bridger construct the Bridger Expansion project that would connect with Prairie Connector at the Alberta-Montana border and deliver to Guernsey, WY (see map below).
As we pointed out in March in our 80+ page multi-client study Roundabout! Canada-To-Rockies Crude Flows Reshaping PADD 4 & Guernsey Market, a direct route from Guernsey to Cushing was likely the favored route for barrels moving on the Prairie Connector / Bridger system to Guernsey, given Cushing's connectivity to the Gulf Coast refining market.
In late May South Bow announced a successful outcome of the open season it held in March offering 450 Mb/d of capacity on the Canadian segment of Prairie Connector.
