Tallgrass Energy Partners, through its subsidiary Tallgrass Midstream (TMID), has entered into an agreement to acquire DCP Midstream’s Douglas natural gas gathering system in the Powder River Basin for approximately US$128 million. The Douglas gathering system encompasses approximately 1500 miles (2414 km) of gathering lines across four counties in Wyoming, USA, and is the primary gathering system for TMID’s Douglas processing plant.
“This is a strategic acquisition that complements our existing assets in the region,” said Tallgrass Chief Commercial Officer Matt Sheehy. “The Douglas gathering system was originally designed to deliver gas to TMID’s Douglas processing facility but was sold separately 15 years ago. We view this recombination as strategically important for our processing activities in the Powder River Basin.”
Tallgrass Energy Partners recently acquired a water disposal facility in the Powder River Basin, through its BNN Water Solutions subsidiary. “These two acquisitions are important components in our total basin strategy in the Powder,” Sheehy added. “The gathering system, when combined with our Casper and Douglas processing facilities, the residue lines feeding Tallgrass Interstate Gas Transmission, access to our water business services and assets and overall proximity to Pony Express, allows Tallgrass to offer a cost-effective one-stop-midstream-shop for producers in the Powder River Basin.”
Tallgrass is a growth-oriented midstream energy operator with transportation, storage, terminal, and processing assets across 10 states.