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Tallgrass to develop new crude oil pipeline

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World Pipelines,

Tallgrass Energy, LP has announced plans to develop a new crude oil pipeline from Cushing, Oklahoma, to the St. James, Louisiana, 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 is expected to be 30 in. in diameter and approximately 700 miles long, with the capacity to transport up to 800 000 bpd of crude oil 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 2Q20 and is permitted for up to 20 million bbls of storage. PLT will have the ability to fully load and unload Post-Panamax vessels (each with a capacity of about 1 million bbls) and barges on its multiple deepwater docks. Tallgrass anticipates building a separate offshore pipeline extension that would give PLT the added capability of loading Very Large Crude Carriers (VLCC) by 3Q21.

“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 bpd 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 15 August 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.

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

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US pipeline news Crude oil pipeline news