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Tallgrass asks US FERC for decision on Colorado Cheyenne natgas projects


Kansas-based energy company Tallgrass Energy LP asked federal energy regulators to promptly issue an order allowing the company to build the Cheyenne Connector and Cheyenne Hub Enhancement natural gas projects in Colorado , according to a filing made available on Wednesday: * Tallgrass said it has addressed all data requests, obtained the necessary right-of-way, and needed only the authorization of the U.S. Federal Energy Regulatory Commission (FERC) to start building the projects. * Tallgrass said prompt action was required to ensure takeaway capacity for new and expanded gas processing plants of DCP Midstream LP and a unit of Anadarko Petroleum Corp , which are both expected to be in service in the autumn. * Tallgrass said any further delay in receiving federal authorization to build the projects may cause construction to impact the 2020 growing season in addition to 2019. The projects will be built on farmland. * The company said it has construction crews on standby, noting any further delays could force it to release the crews and likely face further delays in securing critical crews and equipment. * The 71-mile (114-km) Cheyenne Connector pipeline is designed to transport up to 0.6 billion cubic feet per day (bcfd) from the Denver-Julesburg Basin to the Cheyenne Hub in Weld County, Colorado, where the Cheyenne Hub Enhancement will permit receipt and delivery of gas into the interstate pipeline network. * One billion cubic feet of gas can supply about five million U.S. homes for a day. * The projects will cost an estimated $133 million for the Cheyenne Hub and $213 million for the Cheyenne Connector, according to a report by the U.S. Department of Energy. * Tallgrass said it filed for authorization from FERC in March 2018. The company said it sought to commence construction by April 1, 2019 to meet shippers requests to get the projects in service by Oct. 1, 2019. * FERC staff issued the environmental assessment for the projects on Dec. 18, 2018, finding the projects would have no significant impact on the environment.

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