Tallgrass Signs Potential Seahorse Anchor, Plans Joint Tariff Open Season
Tallgrass Energy said it has signed a binding agreement with an unaffiliated third-party with potential to become an anchor shipper in its proposed Seahorse Pipeline. It also announced plans for an open season seeking commitments under a joint tariff between Seahorse and Pony Express.
Tallgrass said its agreement is with an unaffiliated third-party also could lead to an equity partnership in Seahorse, a crude oil pipeline that would run from Cushing, Okla., to both the St. James, La., refining complex and Tallgrass’ planned Plaquemines Liquids Terminal (“PLT”) in Louisiana.
Bill Moler, chief operating officer at the Kansas-based company said the agreement “provides strong proof of concept for our pipeline project,” adding that “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.”
Tallgrass said its Pony Express Pipeline affiliate 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. Tallgrass also announced a Pony Express expansion open season earlier this month.
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. PLT and the Plaquemines Port will work collaboratively to permit and construct the terminal, Tallgrass said.
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.
“We are committed to being a good neighbor, and we demonstrated that with this land transaction that represents a win for all parties,” Moler said. “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.”
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