Plaquemines Port plans to export crude oil by 2020

Plaquemines Port plans to export crude oil by 2020

The following article was published in New Orleans City Business, August 29, 2018

Tallgrass Energy and Drexel Hamilton Infrastructure Partners plan to construct a crude oil export terminal on the Mississippi River in Plaquemines Parish, according to a Wednesday news release by Louisiana Economic Development.

The Plaquemines Liquids Terminal is permitted for up to 20 million barrels of crude oil storage, with potential plans to be fully operational by mid-2020.

Project partners predict a combined pipeline and terminal project will mean a $2.5 billion capital investment. The project is predicted to generate 35 permanent new direct jobs and at least 1,250 temporary construction jobs.

The project is scheduled as a public-private partnership, with various deepwater docks along the river to be provided by the Plaquemines Port Harbor and Terminal District. The docking facilities will offer terminal operators with the capability to load and unload larger-capacity vessels now navigating the newly expanded Panama Canal.

The terminal would be served by a pipeline with the power to carry up to 800,000 barrels of crude oil daily from Cushing, Oklahoma, to Louisiana. Tallgrass Energy also wants to construct an offshore pipeline extension to offer the terminal project the added capability of loading large crude carriers, the biggest petroleum tankers currently utilized.

According to Sandy Sanders, the port’s executive director, the project has the unanimous support of the port’s board of commissioners.

Read the full article in New Orleans CityBusiness

Tallgrass to Develop New Cushing to St. James Crude Oil Pipeline and Gulf Coast Liquids Export and Import Terminal

Producers get Greater Optionality and Wellhead to End-Market Batching Capability

Tallgrass Energy, LP (NYSE: TGE(“Tallgrass”) today announced plans to develop a new crude oil pipeline from Cushing, Okla., to the St. James, La., refining complex, as well as a separate new exportcapable liquids terminal strategically located near the mouth of the Mississippi River.

The proposed Seahorse Pipeline (“Seahorse”) is expected to be30 inches in diameter and approximately 700 miles long, with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing to the Louisiana Gulf Coast. The pipeline will operate as a common grade batch system that, along with Tallgrass’ Pony Express Pipeline, will ensure domestic refiners and international markets have access to “clean” barrels from five different production basins.  

The proposed new terminal, Plaquemines Liquids Terminal (“PLT”), is a joint development project with Drexel Hamilton Infrastructure Partners, LP and is being structured as a Public-Private Partnership (P3) in concert with the Plaquemines Port & Harbor Terminal District (PPHTD), a Louisiana state agency. The terminal is expected to be fully operational in 2Q 2020 and is permitted for up to 20 million barrels of storage.  PLT will have the ability to fully load and unload Post-Panamax vessels (each with a capacity of about 1 million barrels) and barges on its multiple deep-water docksTallgrass anticipates building a separate offshore pipeline extension that would give PLT the added capability of loading Very Large Crude Carriers (“VLCC”) by 3Q 2021.  

The Seahorse Pipeline and Plaquemines Liquids Terminal projects build on our strategy to provide diversity of supply and greater market optionality to our customers,” said Tallgrass Energy President and CEO David G. Dehaemers Jr. “These projects provide highly desired take-away capacity from Cushing to the St. James refining complexproviding interconnectivity to more than 2.5 million barrels per day of refining capacity and access to international markets.” 

Our customers can rest comfortably knowing that their barrels will be transported on Seahorse in common grade batches from Pony Express directconnected supply basins and Cushing sourced supplieswhich will protect the integrity and help preserve the value of their product all the way to Seahorse’s St. James and export terminal destinations,” said Tallgrass Chief Operating Officer Bill Moler. “From there, our customers will be able to access international refining markets.”

Tallgrass expects to launch its initial open season for the Seahorse Pipeline on Aug. 15, 2018.  The open season is expected to run for 45 days.  Prospective shippers may review details of the open season after executing a confidentiality agreement obtained by contacting Tallgrass representatives Kyle Quackenbush, 303.763.3319; Andrew DiPaolo, 303.763.3329; or Dean Dick, 307.232.4430.

Project investment is dependent upon obtaining satisfactory customer interest and receiving applicable state and federal permits, among other factors

About Tallgrass Energy

Tallgrass Energy, LP (NYSE: TGE) is a growth-oriented midstream energy infrastructure company operating across 11 states with transportation, storage, terminal, water, gathering and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.

To learn more, please visit our website at www.tallgrassenergy.com.

About Drexel Hamilton Infrastructure Partners, LP

Drexel Hamilton Infrastructure Partners, LP (“DHIP”) is an independent infrastructure investment fund that combines deep industry and political expertise with best operational practices honed during years of military service. DHIP makes equity investments in the energy, transport, utilities, water, and waste sectors where we possess deep industry knowledge and access to a network of proprietary relationships. DHIP provides custom tailored financing solutions across a spectrum of capital needs for greenfield and brownfield projects, including acquisition financing, growth capital, co-investments, restructuring and secondaries.

Please visit www.drexelhamiltonip.com for more information

Cautionary Note Concerning Forward-Looking Statements

Disclosures in this press release contain forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the feasibility, cost, execution, in-service timing, capabilities, and expected benefits of the Seahorse and PLT development projects. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by Tallgrasswith the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and Tallgrass does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Louisiana 23 Development Co., LLC invests in the growth of Plaquemines Parish

Louisiana 23 Development Company was established to respond to the need for developing port and marine infrastructure through alternative finance and funding from conventional and previous projects in the region.

The Plaquemines Port Harbor and Terminal District (PPHTD) published a Master Plan in 2009 that called for the construction of a global port facility along the first 100 miles of the Mississippi River.  The Master Plan details the geographic relevance, economic influence, and potential job creation to support the future increase in cargo through the Gulf of Mexico due to the expansion of the Panama Canal and increase in global transportation vessels.

The development of the PPHTD Master Plan is being coordinated as a Public Private Partnership (PPP), where PPHTD serves as the landlord of an over 9.000 acre facility.  LA23 and its financial partners provide alternative funding and manage the identification, permitting, and initial engineering design.  This philosophy allows for the creation of jobs, lease payments, and local tax revenues without the contribution of public tax dollars.  The PPP Model leverages the advantages of both the Public and Private entities.