Kansas-based Tallgrass Energy Partners, LP has completed nearly $350 million in strategic acquisitions by its terminals and water services businesses since May 2, according to a company press release issued on Wednesday.
“Today’s announcements clearly demonstrate TEP’s expansive footprint and ability to grow through strategic and accretive acquisitions as well as through organic commercial development,” said David G. Dehaemers Jr., Tallgrass Energy President and Chief Executive Officer. “These acquisitions and growth projects enable us to help our customers grow their businesses.”
Tallgrass Terminals, LLC recently acquired an additional 49% in the Deeprock Development crude oil terminal at Cushing, Oklahoma for $70 million. This increases its total membership interest in the 2.3 million-barrel crude oil storage facility to 69%.
Tallgrass subsidiary BNN Water Solutions, LLC recently acquired a 63% interest in an entity that owns freshwater facilities in Weld County, Colorado for $7 million. The company plans to invest nearly $10.5 million in the system over the next few months to serve existing customers and grow the business.
Tallgrass Energy also revealed a new binding open season for its Pony Express crude oil pipeline brought new short-haul and long-haul binding transportation commitments totaling 30,000 barrels per day to support construction of the Platteville Extension.
Tallgrass Terminals will upgrade the Buckingham terminal and build a new Grasslands Terminal in Platteville. It is anticipated that both projects will be completed by next year. The Platteville Extension is expected to have a capacity of nearly 80,000 barrels per day.
Pony Express also signed an agreement with CHS, Inc. to connect the 100,000 barrels per day CHS refinery in McPherson, Kansas to Pony Express’s mainline.
In addition to the CHS connection, construction is progressing on the Holly Frontier El Dorado refinery connection facilities. Completion is expected by the end of 2017.
With the completion of the two new refinery connections, Pony Express shippers can deliver more than 300,000 barrels per day to three significant refineries directly connected to Pony Express, inclusive of the Ponca City refinery that is already connected to Pony Express.
Tallgrass Terminals signed, 10-year take-or-pay agreement with a new customer to support the construction of a new terminal in the Central Kansas Uplift. Pony Express will establish a supply connection at the new Kansas terminal and another new common stream of crude oil on its mainline. Tallgrass Terminals will build terminal facilities designed to receive Kansas crude oil production with delivery capabilities in excess of 20,000 barrels per day into the Pony Express mainline. Completion of the facilities is expected early next year.
“We believe all of this work further positions Pony Express as the most diverse and capable crude oil transportation and logistics system in the regions in which it operates,” said Matt Sheehy, Tallgrass Energy Chief Commercial Officer. “Diversity of supply and delivery points, multiple batch shipment capability, readily available expansion capacity and an attractive tariff rate solidify Pony Express as a critical part of the country’s crude oil midstream infrastructure that will be utilized for decades to come.”
Tallgrass Energy also plans to report its 2Q financial results for 2017 on Wednesday, Aug. 2, 2017 via conference call at 3:30 p.m. Central Time that day.