Tallgrass executes shipper agreements for Permian-to-REX natural gas pipeline

Tallgrass Energy Partners has executed anchor shipper precedent agreements for a new 2.4-bcfd natural gas pipeline to deliver from multiple points of receipt in the Permian basin to the 4-bcfd Rockies Express (REX) pipeline and other points of delivery. The firm transportation commitments are sufficient to financially justify construction, with a target in-service date of late 2028.

A future open season will provide an opportunity for other companies to subscribe to firm transportation on the pipeline. The pipeline’s ultimate capacity will be determined based on the level of shipper commitments from the open season.

The pipeline would diversify shipping options out of the Permian basin as well as helping to alleviate occasional bottlenecks in overall carryout capacity.

Tallgrass also launched an open season for a 22,000-b/d expansion of its Pony Express crude oil pipeline running between Williston basin in Wyoming and Cushing, Okla (OGJ Online, May 12, 2025).