Tallgrass Energy Expands Footprint With Nearly $5 Billion in Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Tallgrass Energy LP (NYSE:TGE) (Leawood, Kansas) is making moves to be one of the major players in the U.S. oil and gas midstream sector, with projects including natural gas pipelines, crude oil pipelines, additional natural gas processing capacity and a liquids export terminal. Industrial Info is tracking $4.85 billion in Tallgrass projects.

Click on the image at right for a breakdown of active Tallgrass Energy projects by state.

Among Tallgrass's major projects planned for the future is the construction of the Plaquemines Liquids Terminal on the mouth of the Mississippi River in Louisiana. The project is a joint venture with Plaquemines Port & Harbor Terminal District and Drexel Hamilton Infrastructure Partners LP (Philadelphia, Pennsylvania). Tallgrass closed on the land acquisition for the project in November. The site is permitted for up to 20 million barrels of storage and will have the capability of loading Post-Panamax vessels, which have a capacity of about 1 million barrels, from multiple docks. Construction is anticipated to begin this summer, taking about a year to complete. Tallgrass anticipates building a separate offshore pipeline extension that would give the terminal the capability of loading Very Large Crude Carriers by the third quarter of 2021. The project has an estimated total investment value (TIV) of $1.5 billion. For more information, see Industrial Info's project report.

The terminal would be supplied with crude oil by another Tallgrass project that is in the works, the Seahorse Pipeline, which will carry up to 800,000 barrels per day (BBL/d) of crude oil approximately 700 miles from Cushing, Oklahoma, to the Louisiana Gulf Coast. The project has a TIV of $1.4 billion. The pipeline is planned to be completed in 2021. For more information, see Industrial Info's project reports on the Oklahoma, Texas and Louisiana portions of the pipeline.

While Tallgrass is focusing on crude oil projects, one of its key assets is the Rockies Express (REX) natural gas pipeline, which runs approximately 700 miles from Colorado and Wyoming to eastern Ohio. Parts of the pipeline flow bidirectionally, but Targa is on track to convert other parts to bidirectional flow. The company's website says the pipeline "is transforming into the nation's northernmost bi-directional natural gas header system." The project could kick off by the end of this year, for completion in late 2020. For more information, see Industrial Info's project reports on the Colorado, Wyoming, Nebraska portions of the pipeline and Missouri compressor station modifications.

Related to the REX Pipeline is Tallgrass' Cheyenne Connector project, which will provide incremental volumes of natural gas into the west end of REX. The project involves constructing 70 miles of 36-inch pipeline to transport up to 600 million cubic feet per day from a processing plant in Weld, Colorado, to an interconnection with REX in Weld County, Colorado. Construction could begin this summer, for completion in the first half of 2020. For more information, see Industrial Info's project report.

Tallgrass also has some Wyoming projects in the works. Among these is the Iron Horse crude oil pipeline to interconnect with Tallgrass' former Tallgrass Interstate Gas Transmission Pipeline, which will be converted to carry 100,000 BBL/d of Powder River Basin crude oil to Guernsey, Wyoming, where it will interconnect with Tallgrass' Pony Express Pipeline. The project kicked off last year and is expected to be completed shortly. For more information, see Industrial Info's project report.

Also in Wyoming, Tallgrass' third natural gas processing train at its plant in Douglas is in the preliminary design phase. The 120 million-cubic-foot-per-day train would bring the plant's total processing capacity to 290 million cubic feet per day. Construction could begin later this year, for completion in early 2020. ZAP Engineering & Construction Services Incorporated (Lakewood, Colorado) is providing design engineering on the project, which has an estimated TIV of $80 million. For more information, see Industrial Info's project report.

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