Tallgrass Gets FERC Okay In Denver-Julesberg Basin
The Federal Energy Regulatory Commission gave final approval for the 70-mile Cheyenne Connector pipeline, which will transport natural gas from Colorado’s Denver-Julesberg Basin to Cheyenne, WY, with connections to the Tallgrass Energy Rockies Express Pipeline (REX).
The Cheyenne Connector project is designed to be a large-diameter interstate natural gas pipeline to move natural gas from processing facilities in Weld County, CO to the REX Cheyenne Hub near the Colorado/Wyoming border.
Affiliates of Anadarko Petroleum Corporation and DCP Midstream have signed precedent agreements for a combined 600 MMcf a day on Cheyenne Connector.
Tallgrass said its new Grasslands Terminal crude oil connection in the D-J Basin will nearly double transportation capacity to 80,000 BOPD when it goes into service this month in northern Weld County.
The 30-mile, 12-inch Hereford lateral near Hereford, CO will expand the crude oil capacity of the existing Pony Express system when it goes into service in May 2020.
Tallgrass is doing line fill on the Hereford Lateral in the D-J Basin, where it is accessing new supplies.
The new line has an expected initial design capacity of 600 MMcf/d, with potential room for expansion. Using Cheyenne Connector, producers in the D-J Basin can access interconnected pipelines and local distribution systems at the REX Cheyenne Hub, as well as interconnected systems downstream of REX that reach end-users in West Coast markets, Midwest markets such as Chicago and Detroit, the Gulf Coast, and the Southeast.
In its most recent projection, Tallgrass estimated Cheyenne Connector will be in service in the first quarter of 2020.
Leawood, Kansas-based Tallgrass is constructing and, when complete, will own and operate Cheyenne Connector. It is jointly developing the pipeline with Western Gas Partners and DCP, who both hold an option to invest in Cheyenne Connector at a later date.