Kansas-based Tallgrass Energy Partners unit Tallgrass Midstream is acquiring DCP Midstream’s Douglas natural gas gathering system in the Powder River Basin (PRB) for roughly $128 million.
The Douglas gathering system encompasses roughly 1,500 miles of gathering lines across four counties in Wyoming and is the primary gathering system for Tallgrass Midstream’s Douglas processing plant, Kallanish Energy understands.
“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 Tallgrass Midstream’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.”
The transaction is expected to close by July 1.