Rockies Express Holdings LLC, a wholly owned subsidiary of Tallgrass Development LP, has agreed to acquire the 25% interest in the Rockies Express Pipeline LLC belonging to Sempra US Gas & Power, a unit of Sempra Energy, for $440 million in cash.
As part of the deal, a subsidiary of Phillips 66 that holds 25% interest in REX has a right to purchase its proportionate share of Sempra’s 25% interest being sold to Tallgrass, which could reduce the membership interest acquired by Tallgrass from Sempra to 16.6%.
Tallgrass, a private limited partnership organized in Delaware, expects the deal to close in the second quarter. The company already operates and owns 50% interest in REX, a 1,712-mile natural gas pipeline that that extends from Opal, Wyo., and Meeker, Colo., to Clarington, Ohio.