Back in 2020, the world’s largest alternative asset manager took private a Kan.-based midstream operator in a surprise and sweetened deal valued at $6.3 billion. Since those days of yore under the wing and capital infusions of Blackstone, Tallgrass Energy has taken flight as an energy infrastructure force to be reckoned with, diversifying its traditional oil and gas pipeline, processing, and storage business to include exploring new opportunities in CCS, synthetic methane, sustainable aviation fuel technology, and gigawatt-scale green hydrogen and ammonia.

 Reese Energy Consulting today is following the latest news on Tallgrass, which—aside from its three crude oil pipelines to include the Pony Express, Powder River Express, and Iron Horse and its recently converted 400-mile Trailblazer to C02—operates five natural gas pipelines spanning more than 7,000 miles and flowing 10.3+ BCFD across 10 states. The big bad boy in this bunch includes one of the largest natural gas pipelines ever built in North America. That would be the 1,714-mile Rockies Express simply known as REX, which extends from Colo., to eastern Ohio, with a west-to-east design capacity of 1.8 BCFD and an east-to-west capacity of 2.6 BCFD. Tallgrass operates REX and owns a 75% interest in the pipeline commissioned in 2008. Since its completion, partners have come and gone leaving refiner Phillips 66 the final other stakeholder at 25%, and now no longer.

Phillips announced today it will sell its 25% share in REX to Tallgrass in a $1.28 billion deal that looks like a win-win for both. Phillips chisels off a big chunk of its $3 billion asset divestment strategy, and Tallgrass gains total ownership of its natural gas mothership.