Tallgrass to develop Cushing-to-St. James oil pipeline, terminal

Aug. 1, 2018
Tallgrass Energy LP, Leawood, Kan., plans to build a crude oil pipeline from Cushing, Okla., to the St. James, La., refining complex, as well as a separate new export-capable liquids terminal near the mouth of the Mississippi River.

Tallgrass Energy LP, Leawood, Kan., plans to build a crude oil pipeline from Cushing, Okla., to the St. James, La., refining complex, as well as a separate new export-capable liquids terminal near the mouth of the Mississippi River.

The 700-mile, 30-in. Seahorse Pipeline would transport as much as 800,000 b/d of oil and operate as a common grade batch system that, along with Tallgrass’ Pony Express Pipeline, would give US refiners and international markets access to “clean” barrels from five different production basins, the company said.

The proposed new Plaquemines Liquids Terminal (PLT), a joint development with Drexel Hamilton Infrastructure Partners LP, is being structured as a public-private partnership in concert with the Plaquemines Port & Harbor Terminal District, a Louisiana state agency.

The terminal is permitted for as much as 20 million bbl of storage and is expected to be fully operational in second-quarter 2020. PLT will have the ability to fully load and unload Post-Panamax vessels (each with a capacity of about 1 million bbl) and barges on multiple deepwater docks. Tallgrass anticipates building a separate offshore pipeline extension that would give PLT the capability of loading very large crude carriers by third-quarter 2021.

An initial open season for the proposed pipeline is expected to begin Aug. 15 and run for 45 days.