Tallgrass Announces Anchor Shipper Precedent Agreements for Permian Pipeline to Rockies Express Pipeline

Commitments will financially underpin the pipeline project; subsequent open season will provide the market with access to additional pipeline capacity

DENVER--(BUSINESS WIRE)--Today, Tallgrass announced the execution of anchor shipper precedent agreements for a new pipeline that will transport natural gas from multiple points of receipt in the Permian Basin to the Rockies Express Pipeline and other points of delivery. The firm transportation commitments under the already executed precedent agreements are sufficient to financially justify construction of the pipeline project, subject to customary regulatory and corporate conditions and approvals, with a target in-service date in late 2028.

An open season that will be announced subsequently will provide additional interested parties with an opportunity to subscribe to firm transportation service on the pipeline. The pipeline project is designed to be capable of up to 2.4 Bcf of natural gas transportation, with the ultimate capacity to be determined depending on the level of shipper commitments from the open season.

The new pipeline project is unique in that it will enable affordable and plentiful natural gas to access markets across the U.S., including multiple major markets that are key hubs of activity for industrial, agricultural, and technological development and innovation, from reshoring, policies to promote U.S. agriculture, and AI-driven power demand.

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.

These synergies will provide an opportunity to strengthen and reinforce local communities across the Rockies, Great Plains, and Midwest by providing resilient and flexible infrastructure for low-priced domestic clean energy, working in concert with the development of other forms of power like solar and wind to help keep our environment clean and communities economically vibrant.

About Tallgrass

Tallgrass is a leading energy infrastructure company focused on safely, reliably, and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of advancing decarbonized energy solutions globally.

Cautionary Note Concerning Forward-Looking Statements

Disclosures in this news release contain "forward-looking statements." All statements, other than statements of historical fact, included in this news 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 news release specifically include the scope, capabilities, feasibility, execution, in-service timing, benefits and impacts of the Permian Pipeline project and the execution and timing of any open season in connection therewith. 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 and financial statements made available by Tallgrass. 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.