Tallgrass Energy and Rockies Express Pipeline Announce Completion of REX’s Zone 3 Capacity Enhancement Project

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LEAWOOD, Kan.--(BUSINESS WIRE)-- Tallgrass Energy and Rockies Express Pipeline LLC (“REX”) announced today that the 0.8 billion cubic feet per day REX Zone 3 Capacity Enhancement Project is substantially complete and accepting nominations. REX’s Zone 3 continues to be capable of bidirectional natural gas transportation and can now move 2.6 billion cubic feet per day of natural gas from Clarington, Ohio, to delivery points as far as Mexico, Missouri.

Zone 3 provides significant takeaway capacity for Appalachian natural gas along with flexible transportation routes through its 20 pipeline interconnects and delivery points. Zone 3 capacity from east-to-west is contracted at 2.6 billion cubic feet per day with a weighted average remaining contract life of 16 years as of December 31, 2016.

“The completion of the Capacity Enhancement Project marks another important milestone in the transformation of REX into the nation’s northernmost bi-directional natural gas header system,” said Matt Sheehy, Tallgrass’s Senior Vice President & Chief Commercial Officer, and REX’s President. “Our original Capacity Enhancement shippers saw the long-term value in the project over two years ago when they contracted with us. Since then, as others embraced the REX value proposition, we have steadily added incremental long-term customers to this project, fully subscribing the 0.8 billion cubic feet per day.”

Crystal Heter, REX’s Vice President & General Manager added, “We are pleased we delivered this significant capital project on time and at a cost that is expected to be less than our project budget.”

About Tallgrass Energy

Tallgrass Energy is a family of companies that includes publicly traded partnerships Tallgrass Energy Partners, LP (NYSE: TEP) and Tallgrass Energy GP, LP (NYSE: TEGP), and privately held Tallgrass Development, LP. Operating across 10 states, Tallgrass is a growth-oriented midstream energy operator with transportation, storage, terminal and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.

To learn more, please visit our website at

About Rockies Express Pipeline

Rockies Express Pipeline is an approximately 1,712-mile natural gas transmission pipeline that extends from the Rocky Mountains to Clarington, Ohio. The system consists of 36-inch and 42-inch diameter pipe with a west-to-east long-haul design capacity of up to 1.8 billion cubic feet of natural gas per day and an east-to-west design capacity of 2.6 billion cubic feet of natural gas per day within Zone 3 of the pipeline. In addition, REX has 0.6 billion cubic feet a day of capacity on the Overthrust Pipeline available to it pursuant to a long-term lease.

Rockies Express Pipeline LLC is a joint venture of: a subsidiary of Tallgrass Development, LP (50 percent share); a subsidiary of TEP (25 percent share); and P66REX LLC, a subsidiary of Phillips 66 (25 percent share). A wholly owned subsidiary of TEP operates the pipeline.

Tallgrass Energy
Investor Relations
Nate Lien, 913-928-6012
Media and Trade Inquiries
Phyllis Hammond, 913-928-6014

Source: Tallgrass Energy