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Researched by Industrial Info Resources (Sugar Land, Texas)--Tallgrass Energy LP (NYSE:TGE) is taking strides to become a bigger player in the U.S. midstream sector with more than $4.7 billion in active projects, including terminals, pipelines and natural gas processing. Along with its project activity, the company's income is growing. Tallgrass reported second-quarter 2019 net income of $71.6 million, compared with $51.2 million in second-quarter 2018.
Among the company's accomplishments in the second quarter was the startup of the Iron Horse Pipeline in Wyoming, which will transport 100,000 barrels per day (BBL/d) of crude oil from the Powder River Basin to Guernsey, Wyoming, where it will interconnect with Tallgrass' Pony Express Pipeline. For more information, see Industrial Info's project report. Tallgrass plans to increase capacity on the Pony Express from Guernsey to Cushing, Oklahoma, to 300,000 BBL/d by constructing pump stations and adding new pumps to existing stations. For more information, see Industrial Info's project report.
With such projects under its belt, Tallgrass is progressing with other, even more ambitious projects. Among its largest planned projects is the Plaquemines Liquids Terminal in Louisiana, a crude oil export terminal that will be built on the west bank of the Mississippi River near Belle Chasse. The facility will be built at the site of a former coal terminal next to Phillips 66's (NYSE:PSX) (Houston, Texas) Alliance Refinery. The terminal will have 20 million barrels of storage and will be capable of loading post-Panamax vessels, which have a capacity of about 1 million barrels. Tallgrass eventually hopes to construct an offshore pipeline extension that would enable the terminal to load very large crude carriers, which can transport up to 2 million barrels. In the company's earnings conference call, President and Chief Operating Officer William Moler said that Tallgrass was in discussions with an international exporter that could potentially take enough capacity to move the project forward to a positive final investment decision. For more information, see Industrial Info's project report.
The terminal would be supplied by the planned Seahorse Pipeline, which would carry up to 800,000 BBL/d from Cushing. Open season for the pipeline is planned to end this week. The project has an estimated total investment value of $1.4 billion. Construction could begin early next year, for completion in the second half of 2021. For more information, see Industrial Info's project reports on the Oklahoma, Texas and Louisiana segments of the pipeline.
Tallgrass also is underway with natural gas pipeline projects, including the Cheyenne Connector grassroot natural gas pipeline, which will transport up to 600 million cubic feet per day from Colorado's Denver-Julesburg Basin to connect with the company's Rockies Express (REX) Pipeline at the Cheyenne Hub. Construction on the $214 million project kicked off earlier this year and is expected to wrap up in the first half of 2020. However, the project is facing some final permitting delays. Moler said, "We are still waiting on the 7(c) certificate from FERC [Federal Energy Regulatory Commission] and frankly thought that we would have received it long before now, but as other companies have recently experienced, the FERC approval process has become much slower than what we or others in the industry would like or have experienced in the past." For more information, see Industrial Info's project reports on the pipeline and compressor station.
Tallgrass is in the preliminary design phase for the addition of a third natural gas processing train at its facility in Douglas, Wyoming. The train will have a processing capacity of 170 million cubic feet per day, bringing total capacity to 290 million cubic feet. Construction is set to begin next year, for completion in early 2021. ZAP Engineering & Construction Services Incorporated (Lakewood, Colorado) is performing engineering, procurement and construction. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight 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.
Among the company's accomplishments in the second quarter was the startup of the Iron Horse Pipeline in Wyoming, which will transport 100,000 barrels per day (BBL/d) of crude oil from the Powder River Basin to Guernsey, Wyoming, where it will interconnect with Tallgrass' Pony Express Pipeline. For more information, see Industrial Info's project report. Tallgrass plans to increase capacity on the Pony Express from Guernsey to Cushing, Oklahoma, to 300,000 BBL/d by constructing pump stations and adding new pumps to existing stations. For more information, see Industrial Info's project report.
With such projects under its belt, Tallgrass is progressing with other, even more ambitious projects. Among its largest planned projects is the Plaquemines Liquids Terminal in Louisiana, a crude oil export terminal that will be built on the west bank of the Mississippi River near Belle Chasse. The facility will be built at the site of a former coal terminal next to Phillips 66's (NYSE:PSX) (Houston, Texas) Alliance Refinery. The terminal will have 20 million barrels of storage and will be capable of loading post-Panamax vessels, which have a capacity of about 1 million barrels. Tallgrass eventually hopes to construct an offshore pipeline extension that would enable the terminal to load very large crude carriers, which can transport up to 2 million barrels. In the company's earnings conference call, President and Chief Operating Officer William Moler said that Tallgrass was in discussions with an international exporter that could potentially take enough capacity to move the project forward to a positive final investment decision. For more information, see Industrial Info's project report.
The terminal would be supplied by the planned Seahorse Pipeline, which would carry up to 800,000 BBL/d from Cushing. Open season for the pipeline is planned to end this week. The project has an estimated total investment value of $1.4 billion. Construction could begin early next year, for completion in the second half of 2021. For more information, see Industrial Info's project reports on the Oklahoma, Texas and Louisiana segments of the pipeline.
Tallgrass also is underway with natural gas pipeline projects, including the Cheyenne Connector grassroot natural gas pipeline, which will transport up to 600 million cubic feet per day from Colorado's Denver-Julesburg Basin to connect with the company's Rockies Express (REX) Pipeline at the Cheyenne Hub. Construction on the $214 million project kicked off earlier this year and is expected to wrap up in the first half of 2020. However, the project is facing some final permitting delays. Moler said, "We are still waiting on the 7(c) certificate from FERC [Federal Energy Regulatory Commission] and frankly thought that we would have received it long before now, but as other companies have recently experienced, the FERC approval process has become much slower than what we or others in the industry would like or have experienced in the past." For more information, see Industrial Info's project reports on the pipeline and compressor station.
Tallgrass is in the preliminary design phase for the addition of a third natural gas processing train at its facility in Douglas, Wyoming. The train will have a processing capacity of 170 million cubic feet per day, bringing total capacity to 290 million cubic feet. Construction is set to begin next year, for completion in early 2021. ZAP Engineering & Construction Services Incorporated (Lakewood, Colorado) is performing engineering, procurement and construction. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight 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.
