Tallgrass Energy Partners has announced its terminals business is making two acquisitions and several commercial developments to expand its range of services.
Tallgrass Terminals plans to acquire a 51% membership interest in the Pawnee, Colorado crude oil terminal from Zenith Energy for $31 million.
It is an injection point for the Tallgrass Pony Express Northeast Colorado Lateral with 300,000 barrels of storage and backed by minimum commitments of 90,000 barrels per day. This transaction is expected to close in the first quarter of 2018.
Additionally, Tallgrass Terminals has acquired a 38% interest in Deeprock North, which owns a crude oil terminal facility for $19.5 million.
Following the acquisition, Deeprock North was merged into Deeprock Development. Following this, it now owns a larger and more diverse terminalling complex with total storage capacity of four million barrels. Tallgrass owns 60% of the combined entity and retains significant strategic and commercial control.
In addition to these acquisitions, the company has made several commercial developments to expand the variety of services offered by Pony Express in key crude oil producing basins. It recently secured committed shipper contracts for crude oil transportation and expects record volume throughput in January.
Also in January, the company expects to bring in service two new refinery connections.
Once complete the Pony Express will have six different supply sources and five different crude oil streams.
David G. Dehaemers, president and CEO of Tallgrass Energy, says: 'With news of increasing crude oil production in basins Pony Express serves, we're even more confident that utilization of our pipeline will continue to increase in the future.'
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