Tallgrass Energy, LP, the Kansas City area based midstream company announced it’s made a binding agreement with a firm to be the potential to be an anchor shipper on a line to move crude from Cushing south to Louisiana.
Tallgrass wouldn’t name the third-party but said it has the potential to be an anchor shipper and equity partner in the proposed Seahorse Pipeline. The line will run from the Cushing hub in Oklahoma to the Tallgrass refining complex in St. James, Louisiana and to the company’s planned Plaquemines Liquids Terminal 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 market options including refinery demand in the St. James area and substantial export capability.”
In addition, Tallgrass announced that its affiliate, Tallgrass Pony Express Pipeline, LLC, will launch a new joint tariff open season on Nov. 30 soliciting shipper commitments for crude oil transportation under a joint tariff between the Pony Express and Seahorse pipelines from Guernsey and DJ-Basin origin points to the St. James refinery complex and PLT. This news follows a recently announced Pony Express expansion open season.
Tallgrass also announced details of a $30 million land acquisition that will serve as the site for PLT. The site includes more than 600 acres of land along the Mississippi River about 30 miles south of New Orleans. When complete, PLT is expected to offer up to 20 million barrels of storage for both crude oil and refined products and export facilities capable of loading Suezmax and VLCC vessels for international delivery.
The land was acquired pursuant to an agreement between PLT and the Plaquemines Port & Harbor Terminal District . PLT and the Plaquemines Port will work collaboratively to permit and construct the terminal. As part of the transaction, the Plaquemines Port received a 50-acre tract that will serve as a conservation easement adjacent to the historic community of Ironton, and an additional portion of the site will be made available for the Mid-Barataria Sediment Diversion project, a critical restoration project that is part of Louisiana’s Master Plan to create a more sustainable coast. The Plaquemines Parish Council voted 8-0 in favor of the transaction.