Tallgrass Energy & Kinder Morgan Announce Exclusive Agreement for Rockies Crude Oil Transportation Service to Downstream Mark...
January 22 2019 - 6:45AM
Business Wire
Tallgrass Energy, LP (NYSE: TGE) and Kinder Morgan, Inc. (NYSE:
KMI) today announced an agreement to jointly develop a solution to
increase existing crude oil takeaway capacity in the growing Powder
River and Denver-Julesburg basins and to add incremental capacity
to the Williston Basin and portions of Western Canada.
Pursuant to the agreement, the proposed venture would include
both existing and newly constructed assets. TGE would contribute
its Pony Express Pipeline System, and KMI would contribute portions
of its Wyoming Intrastate Company and Cheyenne Plains Gas Pipeline
and begin the process of abandonment and conversion to crude oil
service. In addition, approximately 200 miles of new pipeline would
be constructed to provide crude oil deliveries into Cushing,
Okla.
In total, the combined pipeline system is expected to be capable
of delivering up to 800,000 barrels per day (bpd) of light crude
oil and 150,000 bpd of heavy crude oil from points in Wyoming and
Colorado to TGE’s and KMI’s Deeprock terminal in Cushing. From
there, customers will have pipeline connectivity to the Gulf Coast
and export markets through TGE’s planned Seahorse Pipeline and
other existing or proposed future pipeline projects. The combined
project is expected to provide initial service as early as the
second half of 2020.
“This combination of assets creates a significant growth
opportunity for both companies,” said Tallgrass Chief Operating
Officer Bill Moler. “Shippers benefit by gaining access to a
pipeline system that can source from multiple basins and access
numerous demand markets including existing refinery connections on
Pony Express and Tallgrass’ downstream options. Other shipper
benefits include a quicker in-service date and the ability to batch
a greater variety of common streams.”
“There are a number of competitive advantages to jointly
developing this project and leveraging KMI’s and TGE’s existing
assets, including the expansion of our Double H Pipeline system,”
said Don Lindley, Chief Commercial Officer for Products Pipelines
at KMI. “Chief among them is the ability to quickly and efficiently
place an additional 550,000 barrels per day of crude transportation
takeaway capacity in service from the Rockies, which helps domestic
producers and offers near-term relief for Canadian producers.”
Completion of the transaction between TGE and KMI remains
subject to conditions, including receipt of applicable state and
federal regulatory approvals, among other items.
Extension of Pony Express Open Seasons
In conjunction with the execution of the agreement, TGE extended
its current Pony Express expansion and joint tariff open season
with Seahorse to Feb. 28, 2019. For further information regarding
the project, please contact Kyle Quackenbush (303-763-3319) or
Andrew DiPaolo (303-763-3329) with TGE and Dwaine Shroyer
(918-588-5074) with KMI.
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.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. We own an interest in or
operate approximately 84,000 miles of pipelines and
157 terminals. Our pipelines transport natural gas, refined
petroleum products, crude oil, condensate, CO2 and other products,
and our terminals transload and store liquid commodities including
petroleum products, ethanol and chemicals, and bulk products,
including petroleum coke, metals and ores.
For more information please visit www.kindermorgan.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 TGE and KMI's proposed joint venture
transaction, TGE and KMI's proposed crude oil transportation
project and the proposed Seahorse Pipeline, including each
transaction and project's feasibility, cost, execution, in-service
timing, capabilities and expected benefits. 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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version on businesswire.com: https://www.businesswire.com/news/home/20190122005242/en/
Tallgrass Energy:Investor
and Financial InquiriesNate Lien,
913-928-6012investor.relations@tallgrassenergylp.comorMedia and
Trade InquiriesPhyllis Hammond,
303-763-3568phyllis.hammond@tallgrassenergylp.comorKinder Morgan:Media RelationsMelissa
Ruiz, 713-420-6397newsroom@kindermorgan.comorInvestor
Relations713-369-9490km_ir@kindermorgan.comwww.kindermorgan.com
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