Tallgrass has announced the execution of anchor shipper precedent agreements for a new pipeline that will transport natural gas from multiple points of receipt in the Permian Basin to the Rockies Express Pipeline and other points of delivery. The firm transportation commitments under the already executed precedent agreements are sufficient to financially justify construction of the pipeline project, subject to customary regulatory and corporate conditions and approvals, with a target in-service date in late 2028.
An open season that will be announced subsequently will provide additional interested parties with an opportunity to subscribe to firm transportation service on the pipeline. The pipeline project is designed to be capable of up to 2.4 billion ft3 of natural gas transportation, with the ultimate capacity to be determined depending on the level of shipper commitments from the open season.
The new pipeline project is unique in that it will enable affordable and plentiful natural gas to access markets across the US, including multiple major markets that are key hubs of activity for industrial, agricultural, and technological development and innovation, from re-shoring, policies to promote US agriculture, and AI-driven power demand.
Upon in-service, natural gas from the project will also be able to reach markets across Tallgrass’ approximately 800 mile decarbonisation pipeline network, so that consumers of new natural-gas-fired power generation and industrial consumers of natural gas will have an immediate and financially viable opportunity to supply their growing energy demand while decarbonising through CO2-capture and sequestration and the use of clean hydrogen.
These synergies will provide an opportunity to strengthen and reinforce local communities across the Rockies, Great Plains, and Midwest by providing resilient and flexible infrastructure for low-priced domestic clean energy, working in concert with the development of other forms of power like solar and wind to help keep our environment clean and communities economically vibrant.
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