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Tallgrass To Develop Crude Pipeline, Liquids Import-Export Terminal

Date 02-Aug-2018
Subject Tallgrass To Develop Crude Pipeline, Liquids Import-Export Terminal

Tallgrass Energy LP (NYSE: TGE) on Aug. 1 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 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, 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 second-quarter 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 by third-quarter 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 COO 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.


Source:- Oilandgasinvestor.com

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