FERC Approves Tallgrass Cheyenne Connector Pipeline

HOUSTON (P&GJ) — The Federal Energy Regulatory Commission (FERC) has given its final approval for the construction of Tallgrass Energy's Cheyenne Connector pipeline, which will transport natural gas from Colorado's DJ Basin to Cheyenne, Wyo., for Midwest delivery via the company's Rockies Express Pipeline.

(source: Tallgrass Energy)

The Cheyenne Connector Project is designed to be a 70-mile, large-diameter interstate natural gas pipeline to move natural gas from processing facilities in Weld County, Colo., to the Rockies Express Pipeline Cheyenne Hub (REX Cheyenne Hub) near the Colorado/Wyoming border.

It has an expected initial design capacity of 600 MMcf/d and potential room for expansion. Affiliates of Anadarko Petroleum Corporation and DCP Midstream have signed precedent agreements for a combined 600 MMcf/d on Cheyenne Connector.  

Using Cheyenne Connector, producers in the DJ Basin can access interconnected pipelines and local distribution systems at the REX Cheyenne Hub as well as interconnected systems downstream of REX that reach end-users in West markets, Midwest markets such as Chicago and Detroit, the Gulf Coast and Southeast.

In its most recent projection, Tallgrass estimated Cheyenne Connector will be in service in the first quarter of 2020.

Leawood, Kansas-based Tallgrass is constructing and, when complete, will own and operate Cheyenne Connector. It is jointly developing the pipeline with Western Gas Partners and DCP, who both hold an option to invest in Cheyenne Connector at a later date.

The project was approved in a 2-1 vote by FERC, which has two vacancies. Republicans Neil Chatterjee and Bernard McNamee voted in favor of order issuing certificates for Cheyenne Connector. Democrat Richard Glick dissented and attached a statement criticizing the agency for treating "greenhouse gas emissions and climate change differently than all other environmental impacts."

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