A new crude oil pipeline is going to be constructed in Oklahoma and will carry oil from Cushing to Louisiana.
Tallgrass Energy, LP based in Leawood, Kansas announced plans to develop the Seahorse Pipeline to the St. James, Louisiana refining complex. The company also plans to construct a separate new export-capable liquids terminal strategically located near the mouth of the Mississippi River.
The Seahorse will consist of a 30-inch diameter pipeline and being nearly 700 miles in length. It will have the capacity of moving up to 800,000 barrels of crude oil a day. Tallgrass indicated the new line 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 should be operational in the second quarter of 2020 and will have up to 20 million barrels of storage. It will have the ability to load and unload Post-Panamax vessels and barges at its multiple deep-water docks. The company also anticipates building a separate offshore pipeline extension giving the terminal the capability of loading those Very Large Crude Carriers by late in 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.”
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.