Tallgrass to Begin OS for New NatGas Pipeline on July 21
7/14 12:56 PM
Tallgrass to Begin OS for New NatGas Pipeline on July 21
Dawn Gallagher
DTN Energy Reporter
OAKHURST, N.J. (DTN) -- Tallgrass today announced a binding open season will
begin July 21 to solicit commitments for firm transportation service on its
previously announced pipeline project from multiple points of receipt in the
Permian Basin to Rockies Express pipeline markets and point(s) of delivery
specified in accordance with the open season terms.
In May, Tallgrass announced the execution of anchor shipper precedent
agreements for the new natural gas pipeline, commitments sufficient to
financially justify construction of the pipeline project. Subject to customary
regulatory and corporate conditions and approvals, the pipeline, designed to be
capable of up to 2.4 Bcf of natural gas transportation, has a target in-service
date in late 2028. The ultimate capacity of the line will be determined
depending on the level of commitments from the upcoming open season, which is
to provide additional interested parties the opportunity to subscribe to firm
transportation service on the line.
The new pipeline project will enable natural gas to access markets broadly
across the United States, including multiple major markets that are key hubs of
activity for industrial, agricultural and data center development.
Upon in-service, natural gas from the project will also be able to reach
markets across Tallgrass' approximately 800-mile decarbonization pipeline
network, so that consumers of new natural-gas-fired power generation and
industrial consumers of natural gas will have an immediate and financially
viable opportunity to supply their growing energy demand while decarbonizing
through CO2-capture and sequestration and the use of clean hydrogen.
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