LEAWOOD, Kan.--(BUSINESS WIRE)--Tallgrass Energy, LP (NYSE: TGE) (“Tallgrass”) today announced plans to develop a new crude oil pipeline from Cushing, Okla., to the St. James, La., refining complex, as well as a separate new export-capable liquids terminal strategically located near the mouth of the Mississippi River.
The proposed Seahorse Pipeline (“Seahorse”) is expected to be 30 inches in diameter and approximately 700 miles long, with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing to the Louisiana Gulf Coast. The pipeline will operate as a common grade batch system that, along with Tallgrass’ Pony Express Pipeline, will ensure domestic refiners and international markets have access to “clean” barrels from five different production basins.
The proposed new terminal, Plaquemines Liquids Terminal (“PLT”), is a joint development project with Drexel Hamilton Infrastructure Partners, LP and is being structured as a Public-Private Partnership (P3) in concert with the Plaquemines Port & Harbor Terminal District (PPHTD), a Louisiana state agency. The terminal is expected to be fully operational in 2Q 2020 and is permitted for up to 20 million barrels of storage. PLT will have the ability to fully load and unload Post-Panamax vessels (each with a capacity of about 1 million barrels) and barges on its multiple deep-water docks. Tallgrass anticipates building a separate offshore pipeline extension that would give PLT the added capability of loading Very Large Crude Carriers (“VLCC”) by 3Q 2021.
“The Seahorse Pipeline and Plaquemines Liquids Terminal projects build on our strategy to provide diversity of supply and greater market optionality to our customers,” said Tallgrass Energy President and CEO David G. Dehaemers Jr. “These projects provide highly desired take-away capacity from Cushing to the St. James refining complex, providing interconnectivity to more than 2.5 million barrels per day of refining capacity and access to international markets.”
“Our customers can rest comfortably knowing that their barrels will be transported on Seahorse in common grade batches from Pony Express direct-connected supply basins and Cushing sourced supplies, which will protect the integrity and help preserve the value of their product all the way to Seahorse’s St. James and export terminal destinations,” said Tallgrass Chief Operating Officer Bill Moler. “From there, our customers will be able to access international refining markets.”
Tallgrass expects to launch its initial open season for the Seahorse Pipeline on Aug. 15, 2018. The open season is expected to run for 45 days. Prospective shippers may review details of the open season after executing a confidentiality agreement obtained by contacting Tallgrass representatives Kyle Quackenbush, 303.763.3319; Andrew DiPaolo, 303.763.3329; or Dean Dick, 307.232.4430.
Project investment is dependent upon obtaining satisfactory customer interest and receiving applicable state and federal permits, among other factors.
About Tallgrass Energy
Tallgrass Energy, LP (NYSE: TGE) is a growth-oriented midstream energy infrastructure company operating across 11 states with transportation, storage, terminal, water, gathering and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.
To learn more, please visit our website at www.tallgrassenergy.com.
About Drexel Hamilton Infrastructure Partners, LP
Drexel Hamilton Infrastructure Partners, LP (“DHIP”) is an independent infrastructure investment fund that combines deep industry and political expertise with best operational practices honed during years of military service. DHIP makes equity investments in the energy, transport, utilities and waste-water sectors where we possess deep industry knowledge and access to a network of proprietary relationships. DHIP works with a variety of sources to custom tailor financing solutions across a spectrum of capital needs for greenfield and brownfield projects, including acquisition financing, growth capital, co-investments, restructuring and secondaries.
Please visit www.drexelhamiltonip.com for more information.
Cautionary Note Concerning Forward-Looking Statements
Disclosures in this press release contain forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the feasibility, cost, execution, in-service timing, capabilities, and expected benefits of the Seahorse and PLT development projects. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by Tallgrass with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and Tallgrass does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
