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Tallgrass announced May 13 that it has executed anchor shipper precedent agreements for a major new natural gas pipeline project, which will transport gas from the Permian Basin to the Rockies Express Pipeline and other delivery points. These agreements represent a significant milestone, as the secured firm transportation commitments are sufficient to financially support the construction of the project, pending customary regulatory and corporate approvals. The pipeline is expected to be placed into service in late 2028.

The project is designed to connect multiple receipt points in the Permian Basin, one of the most prolific natural gas-producing regions in the United States, to a wide range of high-demand markets across the country. The planned pipeline will initially be capable of transporting up to 2.4 billion cubic feet (Bcf) of natural gas per day. However, the final capacity may be adjusted depending on the level of shipper participation secured during an upcoming open season, which will allow additional interested parties to subscribe to firm transportation service.

Tallgrass emphasized that this new pipeline will play a crucial role in facilitating the delivery of affordable, reliable natural gas to several strategic U.S. markets. These include industrial, agricultural and technological centers experiencing growing demand due to manufacturing reshoring, federal initiatives aimed at strengthening domestic agriculture, and the rapid rise in power consumption driven by artificial intelligence and data center development.

A key feature of the project is its integration with Tallgrass’ roughly 800-mile decarbonization pipeline network. This network is designed to transport captured carbon dioxide for permanent sequestration and to distribute clean hydrogen. As a result, the new pipeline will provide customers—particularly power generators and industrial users—with an opportunity to access natural gas in a way that supports emissions reduction goals. This alignment with clean energy and decarbonization efforts underscores Tallgrass’ commitment to providing flexible, forward-looking energy infrastructure.

The company stated that the pipeline will help reinforce energy reliability and economic resilience across several regions, including the Rockies, Great Plains and Midwest. By complementing intermittent renewable sources like wind and solar, the project aims to support a balanced energy mix that keeps costs low, promotes environmental stewardship and sustains local economies.

Tallgrass has not publicly disclosed the names of the anchor shippers but noted that the initial level of commitment is strong enough to proceed with the development phase. The open season will offer other shippers a chance to participate and help shape the final scope of the project.

As energy demands evolve, Tallgrass positions this pipeline as a vital link between domestic natural gas supply and the growing, diverse needs of U.S. markets seeking cleaner, more efficient energy solutions.