Construction Underway and Pipeline on Schedule for In Service Q1 2019
LEAWOOD, Kan. – July 10, 2018 – Tallgrass Energy, LP (NYSE: TGE) (“Tallgrass”) and Silver Creek Midstream, LLC (“Silver Creek”) today announced a binding open season soliciting additional shipper commitments for Niobrara (API 34 – 42) crude oil transportation service on the Iron Horse Pipeline. The system is designed to add additional grades of crude oil as necessary.
Iron Horse, which has secured a 10-year producer-supported committed transportation contract for 15,000 barrels per day, is under construction and currently expected to start commercial operations by Feb. 1, 2019, with an initial capacity of approximately 100,000 barrels per day that is expandable to approximately 200,000 barrels per day. The Iron Horse Pipeline is not dependent upon the results of this open season to begin commercial operations.
Iron Horse is a joint venture between Tallgrass and Silver Creek to transport crude oil from the growing Powder River Basin to the Guernsey, Wyo., oil hub. The approximately 80-mile, 16-inch Iron Horse pipeline will consist of 40 miles of new-build and 40 miles of gas-to-oil conversion pipe. At Guernsey, shippers will have access to the Tallgrass Pony Express Pipeline and other pipelines accessible through Tallgrass Terminals’ Guernsey Terminal, which is under construction and expected to start commercial operations in the fourth quarter of 2018.
The approximately 250-mile Silver Creek Gathering System is also currently under construction and the company has secured multiple long-term commitments for crude oil gathering and transportation services. The System’s 16-inch trunkline is expected to have an initial capacity of approximately 100,000 barrels per day and is expandable up to 200,000 barrels per day and will connect to the Iron Horse Pipeline at Silver Creek’s Midway Terminal in Converse County. The Silver Creek Gathering System is expected to be in service by Feb. 1, 2019.
The Iron Horse open season runs through Aug. 17, 2018. Interested parties may review details of the open season after executing a confidentiality agreement obtained by contacting Tallgrass representatives Kyle Quackenbush, 303.763.3319, or Dean Dick, 307.232.4430.
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 Silver Creek Midstream, LLC
Headquartered in Irving, Texas, Silver Creek Midstream is a private midstream company focused on providing crude oil gathering, transportation and storage services in Texas and Wyoming. Silver Creek Midstream is backed by a $300 million funding commitment from Tailwater Capital, LLC and Silver Creek management.
To learn more, please visit our website at: www.scmidstream.com.
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 whether the Iron Horse pipeline project, the Silver Creek Gathering System, the Silver Creek Midway Terminal or Tallgrass’ Guernsey Terminal will be completed on time, on budget or at all. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Silver Creek and 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 Tallgrass with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and Tallgrass and Silver Creek do 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.
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