Tallgrass Energy Announces Binding Agreement on Seahorse Pipeline, Joint Tariff Open Season and Plaquemines Liquids Terminal Milestone
LEAWOOD, Kan.--(BUSINESS WIRE)-- Tallgrass Energy, LP (NYSE: TGE) (“Tallgrass”) today announced it has signed a binding agreement with an unaffiliated third-party that has the potential to be an anchor shipper and equity partner in Tallgrass’ proposed Seahorse Pipeline, a crude oil pipeline that would run from Cushing, Okla., to both the St. James, La., refining complex and Tallgrass’ planned Plaquemines Liquids Terminal (“PLT”) in Louisiana.
“The Seahorse agreement provides strong proof of concept for our pipeline project,” said Tallgrass Chief Operating Officer Bill Moler. “The market is excited about the versatility of Seahorse, which has multiple market options including refinery demand in the St. James area and substantial export capability.”
In addition, Tallgrass announced that its affiliate, Tallgrass Pony Express Pipeline, LLC, will launch a new joint tariff open season on Nov. 30 soliciting shipper commitments for crude oil transportation under a joint tariff between the Pony Express and Seahorse pipelines from Guernsey and DJ-Basin origin points to the St. James refinery complex and PLT. This news follows a recently announced Pony Express expansion open season.
Tallgrass also announced details of a $30 million land acquisition that will serve as the site for PLT. The site includes more than 600 acres of land along the Mississippi River about 30 miles south of New Orleans. When complete, PLT is expected to offer up to 20 million barrels of storage for both crude oil and refined products and export facilities capable of loading Suezmax and VLCC vessels for international delivery.
The land was acquired pursuant to an agreement between PLT and the Plaquemines Port & Harbor Terminal District (“Plaquemines Port”). PLT and the Plaquemines Port will work collaboratively to permit and construct the terminal. As part of the transaction, the Plaquemines Port received a 50-acre tract that will serve as a conservation easement adjacent to the historic community of Ironton, and an additional portion of the site will be made available for the Mid-Barataria Sediment Diversion project, a critical restoration project that is part of Louisiana’s Master Plan to create a more sustainable coast. The Plaquemines Parish Council voted 8-0 in favor of the transaction.
“We are committed to being a good neighbor, and we demonstrated that with this land transaction that represents a win for all parties,” said Moler. “The community of Ironton benefits from a conservation easement that will provide a buffer between Ironton and any future development; the state of Louisiana has the ability to obtain the property needed for the Mid-Barataria Sediment Diversion project; and PLT procures the land needed for the proposed terminal and docking facility.”
“Our board was quick to offer support to PLT because it is consistent with the Plaquemines Port’s vision to attract and enable projects that contribute to the economic well-being of Plaquemines Parish,” Plaquemines Port Executive Director Sandy Sanders said. “We’re excited that the project will bring much-needed jobs to the parish and the state.”
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.
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 potential anchor shipper and equity partner for the proposed Seahorse Pipeline, the feasibility, cost, execution, in-service timing, capabilities and expected benefits of the Seahorse Pipeline development project, the PLT development project and the Pony Express Pipeline expansion project, and the expected launch of a new joint tariff open season on Nov. 30 by Tallgrass Pony Express Pipeline, LLC. 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.
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Source: Tallgrass Energy