HOUSTON--Tallgrass Energy, LP (NYSE: TGE) and Kinder Morgan, Inc. (NYSE: KMI) today announced an agreement to jointly develop a solution to increase existing crude oil takeaway capacity in the growing Powder River and Denver-Julesburg basins and to add incremental capacity to the Williston Basin and portions of Western Canada.
Pursuant to the agreement, the proposed venture would include both existing and newly constructed assets. TGE would contribute its Pony Express Pipeline System, and KMI would contribute portions of its Wyoming Intrastate Company and Cheyenne Plains Gas Pipeline and begin the process of abandonment and conversion to crude oil service. In addition, approximately 200 miles of new pipeline would be constructed to provide crude oil deliveries into Cushing, Okla.
"This combination of assets creates a significant growth opportunity for both companies," said Tallgrass Chief Operating Officer Bill Moler. "Shippers benefit by gaining access to a pipeline system that can source from multiple basins and access numerous demand markets including existing refinery connections on Pony Express and Tallgrass' downstream options. Other shipper benefits include a quicker in-service date and the ability to batch a greater variety of common streams."
"There are a number of competitive advantages to jointly developing this project and leveraging KMI's and TGE's existing assets, including the expansion of our Double H Pipeline system," said Don Lindley, Chief Commercial Officer for Products Pipelines at KMI. "Chief among them is the ability to quickly and efficiently place an additional 550,000 barrels per day of crude transportation takeaway capacity in service from the Rockies, which helps domestic producers and offers near-term relief for Canadian producers."
Completion of the transaction between TGE and KMI remains subject to conditions, including receipt of applicable state and federal regulatory approvals, among other items.
Extension of Pony Express Open Seasons
In conjunction with the execution of the agreement, TGE extended its current Pony Express expansion and joint tariff open season with Seahorse to Feb. 28, 2019. For further information regarding the project, please contact Kyle Quackenbush (303-763-3319) or Andrew DiPaolo (303-763-3329) with TGE and Dwaine Shroyer (918-588-5074) with KMI.
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.tallgrassenergylp.com.
About Kinder Morgan
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 84,000 miles of pipelines and 157 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals transload and store liquid commodities including petroleum products, ethanol and chemicals, and bulk products, including petroleum coke, metals and ores.
For more information please visit www.kindermorgan.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 arc forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include TGE and KMI's proposed joint venture transaction, TGE and KMI's proposed crude oil transportation project and the proposed Seahorse Pipeline, including each transaction and project's feasibility, cost, execution, in-service timing, capabilities and expected benefits. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of 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 does 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.
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
Kinder Morgan:
Media Relations
Melissa Ruiz, 713-420-6397
newsroom@kindermorgan.com
or
Investor Relations
713-369-9490
km_ir@kindermorgan.com
www.kindermorgan.com