Tallgrass Develops Seahorse Crude Pipeline

September 2018

Tallgrass Energy LP announced plans to develop a new crude oil pipeline from Cushing, OK, to the St. James, LA, 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 inches in diameter and approximately 700 miles long, with the capacity to transport up to 800 Mbpd 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 in concert with the Plaquemines Port & Harbor Terminal District, a Louisiana state agency. The terminal is expected to be fully operational in 2Q 2020 and is permitted for up to 20 MMbbl of storage. PLT will have the ability to fully load and unload Post-Panamax vessels (each with a capacity of about 1 MMbbl) and barges on its multiple deep-water docks. Tallgrass anticipates building a separate offshore pipeline extension that would give PLT the added capability of loading Very Large Crude Carriers by 3Q 2021.

Tallgrass has launched its initial open season for the Seahorse Pipeline, which is expected to run for 45 days.

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

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