LEAWOOD, Kan. -- (Business Wire)
Tallgrass Energy, LP (NYSE: TGE) (“Tallgrass”) and Silver Creek
Midstream, LLC (“Silver Creek”) announced today that they have agreed to
expand their Powder River Basin (“PRB”) joint venture (“Joint Venture”).
The expanded Joint Venture, Powder River Gateway, LLC (“Powder River
Gateway”), will own the Iron Horse Pipeline (“Iron Horse”), the Powder
River Express Pipeline (“PRE”), and crude oil terminal facilities in
Guernsey, Wyo. Both Iron Horse and PRE will transport crude oil produced
in the PRB from Silver Creek’s Pronghorn Terminal to Guernsey, Wyo.
where the crude oil has access to Tallgrass' Pony Express crude pipeline
system (“Pony Express”) and two other existing takeaway pipelines.
Tallgrass will operate the Joint Venture and own 51 percent of Powder
River Gateway; Silver Creek will own 49 percent.
Iron Horse, an approximately 80-mile, 16-inch crude oil pipeline
currently under construction, will have an initial capacity of
approximately 100,000 barrels per day, is expandable up to 200,000
barrels per day and is expected to be in-service in Q1 2019. PRE is an
approximately 70-mile, 12-inch crude oil pipeline, with a current
capacity of 90,000 barrels per day expandable up to 125,000 barrels per
day. The crude oil terminal facilities in Guernsey, Wyo. collectively
own over 340 acres, include 370,000 barrels of crude storage currently
in-service and, once fully constructed, will include over 1 million
barrels of storage. Powder River Gateway has existing interconnections
to Pony Express, two other takeaway pipeline connections, and has the
ability to access any other current or future markets at Guernsey, Wyo.
When combining Silver Creek’s existing system with its recent
acquisition of additional PRB crude oil assets, Silver Creek will own
and operate a total of 120 miles of existing pipeline and have more than
330,000 acres dedicated from top Powder River Basin producers. Silver
Creek’s PRB infrastructure offers rail capability in and out of Silver
Creek’s Pronghorn Terminal located in Converse County, batching
capabilities throughout the system for at least three specs of crude,
and trucking capabilities through a transportation fleet to meet interim
service needs as gathering pipelines are constructed. Furthermore,
Silver Creek will commence construction in Q4 2018 to further develop
the existing gathering and trunkline infrastructure by an initial 52
miles of crude pipelines and 100,000+ barrels of additional storage.
Tallgrass, which owns and operates Pony Express and is developing both
the Seahorse Pipeline (“Seahorse”) and Plaquemines Liquids Terminal
(“PLT”) projects, provides extensive downstream market access for PRB
producers. Powder River Gateway intends to create joint tariffs with
both Pony Express and Seahorse, providing Iron Horse and PRE shippers
seamless transportation from Silver Creek’s Pronghorn Terminal to
Cushing, Okla., St. James, La., export markets through PLT, and more
than 3 million barrels per day of refining demand directly connected to
Pony Express or Seahorse. Additionally, Tallgrass is pursuing multiple
expansion projects on Pony Express to meet the needs of growing PRB
production. These expansion projects will be staged over the next few
years, with the initial pump upgrades coming online in 2018. Pony
Express intends to launch an open season for additional expansion
capacity out of Powder River Gateway’s Guernsey facility, in November
2018.
“We look forward to expanding our partnership with Silver Creek as they
continue to extend their footprint in the PRB,” said Tallgrass Chief
Operating Officer Bill Moler. “Our combined Powder River pipeline system
will offer superior transportation service and increased expansion
flexibility, allowing Powder River Gateway to continue offering the most
competitive rates and services in the PRB as production continues to
increase.”
“Silver Creek is pleased to expand our relationship with Tallgrass in
the PRB,” said J. Patrick Barley, Founder and Chief Executive Officer of
Silver Creek. “Their current and growing long-haul crude transportation
capabilities combined with Silver Creek’s gathering and transportation
assets in the PRB position Powder River Gateway to be the most efficient
and flexible transportation and terminal facility in the PRB, offering
access to all Guernsey downstream markets.”
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 Wyoming. The Company’s existing
crude assets serve the Powder River, Big Horn, and Wind River Basins.
Silver Creek Midstream is backed by an equity commitment from Tailwater
Capital, LLC, The Energy & Minerals Group (“EMG”), 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 the closing of the expanded Powder River
Gateway joint venture between Tallgrass and Silver Creek, the
feasibility, cost, execution, in-service timing, capabilities and
expected benefits of the Iron Horse pipeline, the crude oil terminal
facilities under construction in Guernsey, Wyo., Pony Express expansion
projects, the Seahorse and PLT development projects, and the creation of
joint tariffs by Powder River Gateway with both Pony Express and
Seahorse. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of Tallgrass and
Silver Creek, 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/20181015005969/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
phyllis.hammond@tallgrassenergylp.com
or
Silver
Creek:
info@scmidstream.com
Source: Tallgrass Energy, LP
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