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Researched by Industrial Info Resources (Sugar Land, Texas)--As it prepares to be acquired by a private equity firm in the coming months, pipeline operator Tallgrass Energy LP (NYSE:TGE) (Leawood, Kansas) is preparing for a series on construction and expansion projects to move crude oil from the central U.S. to the Gulf Coast. The company also is looking into expanding its natural gas-processing capacity. Industrial Info is tracking nearly $4.8 billion in projects from Tallgrass, more than 75% of which is attributed to projects in the U.S. Southwest region.

AttachmentClick on the image at right for a map detailing active Tallgrass projects across the U.S.

Citing its pending acquisition by Blackstone Infrastructure Partners LP (NYSE:BX) (New York, New York), which is expected to close in the second quarter, Tallgrass did not release any financial guidance for the coming year and did not hold a conference call to discuss its fourth-quarter 2019 earnings. But the company continues to seek permits for one of its most ambitious projects: the 700-mile Seahorse Pipeline, which is designed to carry up to 800,000 barrels per day (BBL/d) of crude oil from an oil hub in Cushing, Oklahoma, to the Louisiana Gulf Coast.

The Seahorse Pipeline will be divided into three major segments: the estimated $700 million Oklahoma portion, which will run 275 miles; the $600 million Texas portion, which will run 350 miles; and the $200 million Louisiana portion, which will run 75 miles. It is expected to wrap up and begin commercial operations in the third quarter of 2021. For more information, see Industrial Info's project reports on the Oklahoma, Texas and Louisiana portions.

Tallgrass also is planning to build a series of pump stations, each valued at $75 million, that will support Seahorse and will be constructed on the same schedule. They are to be found: One of Tallgrass' existing pipelines is set for a major expansion: the Pony Express Crude Oil Pipeline, which carries 400,000 BBL/d about 760 miles from Guernsey, Wyoming, to the Cushing hub. The company is seeking permits for the expansion, which would add about 70,000 BBL/d and could kick off as early as this summer. Bill Moler, the chief executive officer of Tallgrass, said in a quarterly earnings-related press release that one of the company's "more notable accomplishments" in 2019 was preparing the expansion "while renewing and signing new volume commitments."

The multi-phase expansion would include an estimated $50 million segment installation, running about 25 miles, and modifications to at least 10 pump and compressor stations, each valued at $8 million. For more information, see Industrial Info's project report for the new segment, and click here for a list of pump-station modifications.

Wyoming also is home to one of Tallgrass' major proposals for the gas-processing sector: the estimated $175 million third train at a gas-processing plant in Douglas. Construction could begin as early as this summer on the 120 million-standard-cubic-foot-per-day unit, which would bring total capacity at the Douglas plant to 290 million cubic feet per day. The natural gas feedstock would be sourced from Wyoming's Powder River and Wind River basins. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
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