Tallgrass Development to Acquire Additional Interest in Rockies Express Pipeline
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Tallgrass Development, LP’s wholly owned subsidiary, Rockies Express Holdings, LLC, has signed a purchase agreement with a unit of Sempra U.S. Gas and Power to acquire Sempra’s 25 percent membership interest in Rockies Express Pipeline LLC (REX) for cash consideration of $440 million.
“Since 2012 our team has believed in REX’s significance to natural gas transportation in America, and over the past three and a half years we have executed on the strategy to solidify the pipeline’s prominence and value for the long-term. Tallgrass is very pleased to have the opportunity to purchase an additional interest in REX as we continue to operate the pipeline and transform it into the northern-most, bi-directional natural gas header system in the United States,” said David G. Dehaemers, Jr., president and CEO of Tallgrass.
Tallgrass expects the transaction to close in the second quarter of 2016.
About Tallgrass Development
Tallgrass Development, LP, a private limited partnership organized in Delaware, currently owns a 50 percent membership interest in and operates the Rockies Express Pipeline, an approximately 1,712 mile natural gas pipeline which enables producers in the Rocky Mountain and Appalachian Basin production regions to deliver gas to the Midwest and eastern parts of the country. Tallgrass Development also owns Tallgrass Terminals, which owns crude oil terminal facilities near Sterling, Colorado and owns an interest in the Deeprock Cushing crude oil terminal. Further, Tallgrass Development owns a 2 percent minority ownership interest in Tallgrass Pony Express Pipeline, which is a crude oil pipeline commencing in Guernsey, Wyoming and terminating in Cushing, Oklahoma that includes a lateral in northeast Colorado that commences in Weld County, Colorado, and interconnects with the pipeline just east of Sterling, Colorado. In addition, Tallgrass Development currently owns 12,873,480 common units in Tallgrass Energy Partners, LP.
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