Tallgrass Energy Partners, LP has acquired Tallgrass Terminals, LLC and Tallgrass NatGas Operator, LLC, the operator of the Rockies Express Pipeline, from Tallgrass Development for $140 million.
With the acquisition, Tallgrass Energy Partners now owns the following fully operational assets and projects under development:
- The Sterling Terminal near Sterling, Colo., that provides approximately 1.3 million barrels of operational storage to the Tallgrass Pony Express crude oil pipeline.
- The Buckingham Terminal in northeast Colorado that includes four truck unloading skids capable of receiving up to 16,000 barrels per day and provides shippers an injection point into Tallgrass Pony Express.
- A 20 percent interest in the Deeprock Development Terminal in Cushing, Okla., which provides Tallgrass Pony Express approximately 2.3 million barrels of operational storage capacity.
- Approximately 550 acres in south Cushing, Okla., where civil engineering work is nearing completion and the permitting process is underway for up to 5.5 million barrels of storage for a potential terminal facility located on approximately 80 acres of the parcel. The terminal would connect with other third-party terminals in Cushing, have inbound pipeline connectivity and provide outbound pipeline connectivity to destinations on the Gulf Coast. Tallgrass Terminals has spent in excess of $10 million acquiring and developing the property to this point.
- Approximately 250 acres in Guernsey, Wyo., where permits have been acquired for 2.1 million barrels of storage. Tallgrass Terminals is currently exploring a number of opportunities that could provide customers with receipt, blending, storage and delivery services, in addition to direct access to transportation services on Tallgrass Pony Express.