Construction Underway and Pipeline on Schedule for In Service Q1 2019
LEAWOOD, Kan. -- (Business Wire)
Tallgrass Energy, LP (NYSE: TGE) (“Tallgrass”) and Silver Creek
Midstream, LLC (“Silver Creek”) today announced a binding open season
soliciting additional shipper commitments for Niobrara (API 34 – 42)
crude oil transportation service on the Iron Horse Pipeline. The system
is designed to add additional grades of crude oil as necessary.
Iron Horse, which has secured a 10-year producer-supported committed
transportation contract for 15,000 barrels per day, is under
construction and currently expected to start commercial operations by
Feb. 1, 2019, with an initial capacity of approximately 100,000 barrels
per day that is expandable to approximately 200,000 barrels per day. The
Iron Horse Pipeline is not dependent upon the results of this open
season to begin commercial operations.
Iron Horse is a joint venture between Tallgrass and Silver Creek to
transport crude oil from the growing Powder River Basin to the Guernsey,
Wyo., oil hub. The approximately 80-mile, 16-inch Iron Horse pipeline
will consist of 40 miles of new-build and 40 miles of gas-to-oil
conversion pipe. At Guernsey, shippers will have access to the Tallgrass
Pony Express Pipeline and other pipelines accessible through Tallgrass
Terminals’ Guernsey Terminal, which is under construction and expected
to start commercial operations in the fourth quarter of 2018.
The approximately 250-mile Silver Creek Gathering System is also
currently under construction and the company has secured multiple
long-term commitments for crude oil gathering and transportation
services. The System’s 16-inch trunkline is expected to have an initial
capacity of approximately 100,000 barrels per day and is expandable up
to 200,000 barrels per day and will connect to the Iron Horse Pipeline
at Silver Creek’s Midway Terminal in Converse County. The Silver Creek
Gathering System is expected to be in service by Feb. 1, 2019.
The Iron Horse open season runs through Aug. 17, 2018. Interested
parties may review details of the open season after executing a
confidentiality agreement obtained by contacting Tallgrass
representatives Kyle Quackenbush, 303.763.3319, or Dean Dick,
307.232.4430.
About Tallgrass Energy
Tallgrass Energy, LP (NYSE: TGE) is a growth-oriented midstream energy
infrastructure company operating across 11 states with transportation,
storage, terminal, water, gathering and processing assets that serve
some of the nation’s most prolific crude oil and natural gas basins.
To learn more, please visit our website at www.tallgrassenergy.com.
About Silver Creek Midstream, LLC
Headquartered in Irving, Texas, Silver Creek Midstream is a private
midstream company focused on providing crude oil gathering,
transportation and storage services in Texas and Wyoming. Silver Creek
Midstream is backed by a $300 million funding commitment from Tailwater
Capital, LLC and Silver Creek management.
To learn more, please visit our website at: www.scmidstream.com.
Cautionary Note Concerning Forward-Looking
Statements
Disclosures in this press release contain forward-looking statements.
All statements, other than statements of historical facts, included in
this press release that address activities, events or developments that
management expects, believes or anticipates will or may occur in the
future are forward-looking statements. Without limiting the generality
of the foregoing, forward-looking statements contained in this press
release specifically include whether the Iron Horse pipeline project,
the Silver Creek Gathering System, the Silver Creek Midway Terminal or
Tallgrass’ Guernsey Terminal will be completed on time, on budget or at
all. Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Silver Creek and
Tallgrass, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements, and other
important factors that could cause actual results to differ materially
from those projected, including those set forth in reports filed by
Tallgrass with the Securities and Exchange Commission. Any
forward-looking statement applies only as of the date on which such
statement is made and Tallgrass and Silver Creek do not intend to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180710005331/en/
Contacts:
Tallgrass Energy
Investor and Financial Inquiries
Nate
Lien, 913-928-6012
investor.relations@tallgrassenergylp.com
or
Media
and Trade Inquiries
Phyllis Hammond, 303-763-3568
media.relations@tallgrassenergylp.com
or
Silver
Creek Midstream
Jon Hanna
SVP of Business Development
info@scmidstream.com
Source: Tallgrass Energy, LP
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