Brand New Way – Tallgrass Gears Up for DJ Production Growth with Cheyenne Hub Expansion Plans

Crude oil and associated gas production volumes from the Denver-Julesburg (DJ) play in the Niobrara Shale have been climbing in recent months, and drilling activity suggests more growth is on the way. In response, Tallgrass Energy Partners last month proposed two related projects — the Cheyenne Connector pipeline and REX Cheyenne Hub Enhancement — to increase capacity and liquidity at the Cheyenne Hub, a key trading and pricing location for the DJ basin. The projects potentially would push more gas onto Tallgrass’s bidirectional, cross-country Rockies Express Pipeline (REX) east, in direct competition with other growing supply regions. In today’s blog, we take a closer look at Tallgrass’s plans to increase takeaway capacity out of the DJ basin.

RBN Energy

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