Tallgrass Energy Aims to Link DJ Basin Gas to U.S. Markets

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Tallgrass Energy Partners LP has launched an open season to transport natural gas on the Cheyenne Connector pipeline from the Denver-Julesburg Basin (DJ Basin) to the Rockies Express Pipeline (REX) Cheyenne Hub, just south of the Colorado-Wyoming border.

Cheyenne Connector has signed long-term precedent agreements to transport 600 million cubic feet per day (MMcf/d) of natural gas with affiliates of Anadarko Petroleum Corp. and DCP Midstream LP. The pipeline will provide takeaway solutions for DJ Basin producers, connecting natural gas to REX’s Cheyenne Hub where it can then be delivered to numerous demand markets across the country on either REX or other interconnected pipelines.

Tallgrass will operate the Cheyenne Connector, which will be a large-diameter pipeline approximately 70 miles long, with an initial capacity of at least 600 MMcf/d and significant capability for expansion. Tallgrass is jointly developing the pipeline with Western Gas Partners LP and DCP, both of which hold an option to invest in Cheyenne Connector at a later date. Cheyenne Connector is expected to be in service in by the third quarter 2019, subject to certain conditions, including required approvals from the Federal Energy Regulatory Commission (FERC).

“We are pleased to support this takeaway solution which will facilitate continued growth of the DJ,” said Anadarko senior vice president Scott Moore in a Sept. 12 company statement.

“We believe this project is another important step in developing and expanding market access to serve our customers and meet their DJ production growth,” said Don Baldridge, president of commercial for DCP.

Tallgrass Energy Partners chief commercial officer Matt Sheehy agreed, adding, “Tallgrass is excited to work with Anadarko and DCP to serve the needs of the producing community in the DJ Basin. As production increases in the basin, additional pipeline capacity is needed, and by taking gas to the REX Cheyenne Hub, Cheyenne Connector will further link Rockies gas to diverse end-user markets across the country.”

Tallgrass Energy is a family of companies that includes publicly traded partnerships Tallgrass Energy Partners LP and Tallgrass Energy GP LP, as well as privately held Tallgrass Development LP. Operating across 10 states, Tallgrass is a growth-oriented midstream energy operator with transportation, storage, terminal, water, gathering and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.

 

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