Tallgrass Energy Partners has acquired a stake in a Cushing crude oil terminal as well as a series of deals that expand its Pony Express pipeline.
The company recently acquired an additional 49% interest in the Deeprock Development crude oil terminal at Cushing, Oklahoma, increasing its overall stake to 69%.
Deeprock is a 2.3 million barrel crude oil storage facility which has Kinder Morgan and Deeprock Energy Resources as joint partners.
The company says its believes the acquisition will allow it to more effectively pursue the development and growth of its potential crude oil terminal project located on 550 acres in South Cushing.
Additionally, Tallgrass has made several significant commercial deals to expand and strengthen its Pony Express crude oil pipeline position, including a successful open season to secure committed shipper contracts for crude oil transportation of a new common stream.
It also signed an agreement with CHS to connect the 100,000 barrels per day CHS McPherson refinery to Pony Express' mainline.
Tallgrass Terminals has also obtained a signed, 10-year take-or-pay agreement from a new customer to support the construction of a new terminal in the Central Kansas uplift. Pony Express will establish a new supply connection at the new terminal and another new common stream of crude oil on its mainline. Tallgrass will build terminaling facilities designed to receive Kansas crude oil production with delivery capabilities in excess of 20,000 barrels per day into the Pony Express mainline.
Completion of the facilities is expected in the first quarter of 2018.
Matt Sheehy, Tallgrass Energy's CCO, says: 'We believe all of this work further positions Pony Express as the most diverse and capable crude oil transportation and logistics system in the regions in which it operates.
'Diversity of supply and delivery points, multiple batch shipment capability, readily available expansion capacity and an attractive tariff rate solidify Pony Express as a critical part of the country's crude oil midstream infrastructure that will be utilised for decades to come.'
A new player in the European marketInvesting in signficant potential on the Thames M&A activity surges on new found confidence Storage terminal investors: a decade of change Oil breakout in 2017 to gain momentum in 2018 IPTF terminal: defying the odds in the Middle East Alternative gateway to Europe Europe: a flexible storage market The storage outlook Overfill protection: A review of API 2350 4th & 5th edition