Tallgrass Energy LP announced that both the Cheyenne Connector pipeline and the Rockies Express Pipeline (REX) Cheyenne Hub Enhancement Project will commence commercial service effective June 26. The company obtained approval from the Federal Energy Regulatory Commission (FERC) on June 24. Tallgrass owns 50 percent and operates Cheyenne Connector; DCP Midstream, the D-J Basin’s leading provider of integrated gathering, processing and logistics assets, owns the other 50 percent.
“We’re delighted to bring these projects in service safely,” said Crystal Heter, Tallgrass Energy’s segment president — natural gas transportation. “This is a win for Colorado producers and for Tallgrass, as Cheyenne Connector provides much-needed incremental takeaway capacity from the D-J Basin. The REX Cheyenne Hub Enhancement Project provides Colorado producers connectivity to bring their natural gas into the REX pipeline at Cheyenne Hub and from there to markets across the country never before available to D-J production.”
The 70-mile, 36-in. diameter Cheyenne Connector is fully subscribed at 600 million cubic feet per day (MMcf/d), with additional expansion capacity available. The pipeline receives natural gas from processing facilities in southern Weld County, Colorado, in the D-J Basin and delivers it to the REX Cheyenne Hub just south of the Wyoming border, where numerous other natural gas pipelines interconnect with REX.
“Cheyenne Connector not only expands market access for D-J Basin natural gas, but fully unlocks the production potential of this premier basin for years to come,” said Corey Walker, president of operations for DCP Midstream. “With Cheyenne Connector now in-service, we are excited to further integrate our value chain to better serve our producer customers and create new cash flows.”
The REX Cheyenne Hub was modified to allow it to receive natural gas from interconnecting pipelines and to enable bi-directional capability at several existing interconnects. It is currently subscribed to 800 MMcf/d, 200 MMcf/d of which is anticipated to be placed in-service in the fourth quarter of 2020. The REX Cheyenne Hub Enhancement Project has additional expansion capability beyond the 800 MMcf/d subscribed. Natural gas connecting to the REX Cheyenne Hub can then be transported to numerous demand markets across the country on REX and through downstream interconnected pipelines.
Tallgrass Energy 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.
DCP Midstream is a Fortune 500 midstream master limited partnership headquartered in Denver, with a diversified portfolio of gathering, processing, logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the United States. The owner of DCP’s general partner is a joint venture between Enbridge and Phillips 66.