Tallgrass Energy Announces Anchor Shipper for Seahorse Pipeline

Tallgrass Energy announced on Monday that it has signed a binding agreement with an unaffiliated third-party that will potentially be an anchor shipper and equity partner in Tallgrass’s Seahorse Pipeline.

The Seahorse Pipeline would move crude oil from Cushing, Okla. To both the St. James, La refining complex as well as Tallgrass’s planned Plaquemines Liquids Terminal (PLT) in Louisiana.

“The Seahorse agreement provides strong proof of concept for our pipeline project,” said Tallgrass Chief Operating Officer Bill Moler. “The market is excited about the versatility of Seahorse, which has multiple options including refinery demand in the St. James area and substantial export capability.”

On Nov. 30, Tallgrass Pony Express Pipeline, LLC will launch a new joint tariff open season soliciting shipper commitments for crude oil transportation under a joint tariff between the Pony Express and Seahorse Pipeline from Guernsey and DJ-Basin origin points to the St. James refinery complex and PLT.

There were additional announcements such as the acquisition of $30 million worth of land that will serve as the site for PLT. It is 600 acres across the Mississippi River about 30 miles south of New Orleans. PLT will offer up to 20 million barrels of storage for both crude oil and refined products and export facilities.

Source:
Street Insider