Inspectioneering
News

Tallgrass Energy to Develop New Oklahoma-to-Louisiana Crude Oil Pipeline and Gulf Coast Liquids Terminal

Tallgrass Energy L.P., August 6, 2018

Tallgrass Energy, LP (“Tallgrass”) has announced plans to develop a new crude oil pipeline from Cushing, Okla., to the St. James, La., refining complex, as well as a separate new export-capable liquids terminal strategically located near the mouth of the Mississippi River.

The proposed Seahorse Pipeline (“Seahorse”) is expected to be 30 inches in diameter and approximately 700 miles long, with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing to the Louisiana Gulf Coast. The pipeline will operate as a common grade batch system that, along with Tallgrass’ Pony Express Pipeline, will ensure domestic refiners and international markets have access to “clean” barrels from five different production basins.

The proposed new terminal, Plaquemines Liquids Terminal (“PLT”), is a joint development project with Drexel Hamilton Infrastructure Partners, LP and is being structured as a Public-Private Partnership (P3) in concert with the Plaquemines Port & Harbor Terminal District (PPHTD), a Louisiana state agency. The terminal is expected to be fully operational in 2Q 2020 and is permitted for up to 20 million barrels of storage. PLT will have the ability to fully load and unload Post-Panamax vessels (each with a capacity of about 1 million barrels) and barges on its multiple deep-water docks. Tallgrass anticipates building a separate offshore pipeline extension that would give PLT the added capability of loading Very Large Crude Carriers (“VLCC”) by 3Q 2021.

The Seahorse Pipeline and Plaquemines Liquids Terminal projects build on our strategy to provide diversity of supply and greater market optionality to our customers,” said Tallgrass Energy President and CEO David G. Dehaemers Jr. “These projects provide highly desired take-away capacity from Cushing to the St. James refining complex, providing interconnectivity to more than 2.5 million barrels per day of refining capacity and access to international markets.”

Our customers can rest comfortably knowing that their barrels will be transported on Seahorse in common grade batches from Pony Express direct-connected supply basins and Cushing sourced supplies, which will protect the integrity and help preserve the value of their product all the way to Seahorse’s St. James and export terminal destinations,” said Tallgrass Chief Operating Officer Bill Moler. “From there, our customers will be able to access international refining markets.”

Tallgrass expects to launch its initial open season for the Seahorse Pipeline on Aug. 15, 2018. The open season is expected to run for 45 days. Prospective shippers may review details of the open season after executing a confidentiality agreement obtained by contacting Tallgrass representatives Kyle Quackenbush, 303.763.3319; Andrew DiPaolo, 303.763.3329; or Dean Dick, 307.232.4430.

Project investment is dependent upon obtaining satisfactory customer interest and receiving applicable state and federal permits, among other factors.

About Tallgrass Energy

Tallgrass Energy, LP 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.


Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Acronyms

Commonly used asset integrity management and inspection acronyms.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.