Tallgrass Energy signed a binding agreement with an unaffiliated third-party that has the potential to be an anchor shipper and equity partner in its proposed Seahorse Pipeline in the US.
The Seahorse Pipeline is crude oil pipeline that would run from Cushing, Oklahoma to both the St. James refining complex and Tallgrass’ planned Plaquemines Liquids Terminal (PLT) in Louisiana.
Tallgrass chief operating officer Bill Moler said: “The Seahorse agreement provides strong proof of concept for our pipeline project.
“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 (“Plaquemines Port”). 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.
Moler said: “We are committed to being a good neighbor, and we demonstrated that with this land transaction that represents a win for all parties.
“The community of Ironton benefits from a conservation easement that will provide a buffer between Ironton and any future development; the state of Louisiana has the ability to obtain the property needed for the Mid-Barataria Sediment Diversion project; and PLT procures the land needed for the proposed terminal and docking facility.”
Plaquemines Port executive director Sandy Sanders said: “Our board was quick to offer support to PLT because it is consistent with the Plaquemines Port’s vision to attract and enable projects that contribute to the economic well-being of Plaquemines Parish.
“We’re excited that the project will bring much-needed jobs to the parish and the state.”
Source: Company Press Release