Tallgrass Energy declares open season for gas transmission through Cheyenne pipeline
Tallgrass Energy Partners (TEP) has unveiled an open season to transport natural gas on the Cheyenne Connector pipeline linking the Denver-Julesburg Basin and the Rockies Express Pipeline (REX) Cheyenne Hub, located south of the Colorado-Wyoming border in the US.
The company previously signed agreements with affiliates of Anadarko Petroleum and DCP Midstream to transport 600MMcf/d of natural gas.
Cheyenne Connector will be operated by Tallgrass and is expected to serve DJ Basin gas producers by providing takeaway solutions.
It will also connect natural gas to REX’s Cheyenne Hub, which will then be delivered to several markets across the country via REX or other interconnected pipelines.
DCP Midstream commercial president Don Baldridge said: “We believe this project is another important step in developing and expanding market access to serve our customers and meet their DJ production growth.”
The 70mi Cheyenne Connector pipeline is expected to have an initial capacity of about 600MMcf/d, with potential for further expansion.
Additional stakeholders partnering with Tallgrass for the pipeline's development include Western Gas Partners and DCP. Both companies have been granted an option to invest in Cheyenne Connector in future.
TEP chief commercial officer Matt Sheehy said: “As production increases in the basin, additional pipeline capacity is needed and by taking gas to the REX Cheyenne Hub, Cheyenne Connector will further link Rockies gas to diverse end-user markets across the country.”
Cheyenne Connector is scheduled to become operational in the third quarter of 2019 and is conditional on the fulfilment of certain conditions, including approvals from the Federal Energy Regulatory Commission.