
Tallgrass Energy and its San Juan Connection
Colo.-based Tallgrass Energy has a tall order in mind for its future building midstream infrastructure. Specifically, a proposed mixed-use pipeline the company says could be operational by 2027. Skeptics say it could be years. Reese Energy Consulting today is following the latest news on the proposed 234-mile GreenView pipeline originating northwest of Farmington, N.M., across the Navajo Nation to Flagstaff, Arizona.
Arizona’s largest natural gas pipelines transport Permian gas and are completely subscribed. GreenView, which is designed to flow gas and eventually gas-hydrogen blends, would connect the San Juan Basin to Arizona and new western markets, in addition to serving three major power plants in the Phoenix and Yuma regions and meeting increasing gas demand from data centers.
Building pipelines doesn’t come without hurdles or opposition, and GreenView has been no exception. The company shifted its initial focus on building an exclusive hydrogen pipeline to one that transports gas due to market changes. For some, this didn’t sit well. Still, the company received its first major approval in March this year from the Navajo Nation Council that conditionally allows Tallgrass to begin work on a section of the pipeline with a right-of-way contingent on completion of “all required environmental studies and archaeological clearances.” The section of pipe runs from a spot near Farmington to a point about 40 miles north of Flagstaff.
As for the gas-rich San Juan, interest continues to climb. Producers Hilcorp Energy, Mach Natural Resources, and Logos Energy are the top dogs here finding natural gas treasures, especially in the Mancos Shale. Private Investor Sixth Street in June acquired Logos for $1 billion.