Tallgrass has announced an agreement to purchase the Ruby Pipeline.
The acquisition of this asset provides access to established markets, an additional ~1.5 bcf/d of natural gas capacity to the company’s portfolio and immediate and strong cash flow to the company.
The investment will provide Tallgrass a platform to enhance natural gas service to West Coast markets. It also provides a unique opportunity for Tallgrass to utilize Ruby’s 683-mile existing infrastructure network to advance Tallgrass’ initiatives to offer decarbonized energy solutions such as responsibly sourced and renewable natural gas to customers across the U.S.
“Ruby’s capabilities maintain our nation’s energy security and provide long-term opportunities in the transportation of the molecules that will be required in the energy transition,” said Matt Sheehy, President and CEO of Tallgrass. "In addition to gaining new teammates, this acquisition further advances our track record of optimizing existing infrastructure to lead energy solutions.”
The transaction is expected to close in the first quarter of 2023 subject to customary regulatory approvals and closing conditions.
