Tallgrass Energy

What Tallgrass Energy does

Tallgrass Energy is a multi-commodity midstream energy infrastructure company operating over 10,000 miles of FERC-regulated pipelines across 14 U.S. states, transporting approximately 10% of U.S. energy. The company serves natural gas and crude oil producers in major basins (Bakken, Niobrara, Powder River, Denver-Julesburg, Permian, Hugoton-Anadarko), refiners, utilities, ethanol/biofuel producers, and — most strategically — hyperscale AI data center operators requiring dedicated power generation capacity.

Operations are organized around five commodity segments: Natural Gas Transportation and Storage (REX, Ruby Pipeline, TIGT, Trailblazer, Cheyenne Connector, East Cheyenne Gas Storage — 10.3+ Bcf/day capacity, ~25 Bcf storage); Crude Oil Transportation and Terminaling (Pony Express, Powder River Express, Iron Horse — ~700,000 bpd capacity, 8.3M+ barrel storage across nine terminals); CO2 Capture and Sequestration (Trailblazer pipeline conversion to a ~400-mile CO2 backbone with 10M+ tons/year sequestration capacity); Hydrogen-to-Power (majority stake in Escalante H2 Power, hydrogen demonstration projects); and Water Solutions (sourcing, recycling, disposal with 8.3M barrel capacity in Powder River). Stanchion Energy operates as the company's commodity marketing subsidiary.

Revenue is generated primarily through fee-based, long-term take-or-pay transportation and storage contracts, with capacity-based pricing rather than volume-based economics, providing revenue stability across cycles. The company is controlled by Blackstone Infrastructure Partners (since 2019), with Canada Pension Plan Investment Board (CPP Investments) holding a minority stake acquired in August 2024 for approximately US$843 million. A pending all-stock merger with Black Hills Corp (announced April 2026) would create Bright Horizon Energy Corporation, combining Tallgrass's midstream footprint with Black Hills's electric and gas utility operations. Major capital deployment is concentrated on data center power infrastructure, most notably the $7B+ Cheyenne Power Hub serving the Project Jade AI data center campus in Wyoming, with Crusoe Energy and Mitsubishi Power Americas as joint development partners.

Name

Tallgrass Energy

Legal name

Tallgrass Energy, LP

Website

https://tallgrass.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Tallgrass Energy is a multi-commodity midstream infrastructure company operating 10,000+ miles of FERC-regulated pipelines across 14 U.S. states, transporting oil, natural gas, CO2, and hydrogen for producers, refiners, utilities, ethanol producers, and hyperscale data center operators.

Ownership category

akta.pro rank

Product category

Midstream Energy Infrastructure

NAICS

Pipeline Transportation of Natural Gas (486210), Pipeline Transportation of Natural Gas (4862), Natural Gas Distribution (22121), Fossil Fuel Electric Power Generation (221112), Electric Bulk Power Transmission and Control (221121)

SIC

Natural Gas Transmisison & Distribution (4923), Natural Gas Transmission (4922), Pipe Lines (No Natural Gas) (4610), Cogeneration Services & Small Power Producers (4991), Oil & Gas Field Services, Nec (1389)

akta.pro primary industry

Midstream Commercial Services (Capacity Marketing, Balancing & Scheduling) (EUAAACAL)

akta.pro secondary industries

Gas Pipeline & Midstream Asset Management (EUAEAMAF), Captive & Embedded Gas-Fired Power Generation (Industrial/Commercial CHP) (EUALALAB), Repowering, Augmentation & Retrofit Integration (Capacity Expansion) (EUAEAEAL), Blending, Additization & Terminal Operations (In-Terminal Blending, Dyeing, Bio-blending) (EUALAEAJ)

Keywords

• Midstream energy infrastructure
• Natural gas transportation
• Crude oil pipelines
• Carbon capture sequestration
• Hydrogen power generation

Headquarters

HQ city

Leawood

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain, Technology or R&D, Marketing or Sales

Revenue model

1. Natural Gas Transportation and Storage: Fee-based transportation and storage services through FERC-regulated pipelines including Rockies Express Pipeline (REX), Ruby Pipeline, TIGT, Trailblazer, Cheyenne Connector, and East Cheyenne Gas Storage. Long-term take-or-pay contracts provide stable revenue. Capacity to transport more than 10.3 bcf per day and store approximately 25 bcf of natural gas.
2. Crude Oil Transportation and Terminaling: Transportation via three FERC-regulated pipelines (Pony Express, Powder River Express, Iron Horse) with capacity to transport about 700,000 barrels per day. Nine terminals with storage capacity exceeding 8.3 million barrels. Revenue from long-term shipper commitments.
3. Commodity Marketing (Stanchion Energy): Full-service natural gas, crude oil, and natural gas liquids marketing providing trading, scheduling, risk management, and logistics services to producers, industrials, data centers, power generators, refineries, and utilities.
4. Water Services: Responsible water sourcing, recycling, and disposal services. Water storage capacity of 8.3 million barrels in Powder River Basin with discharge capability of 40,000 barrels per day. Municipal effluent use in water-stressed areas. Services increase efficiency of water usage in drilling operations.
5. CO2 Transportation and Sequestration: CO2 pipeline transportation and permanent underground sequestration services. Trailblazer pipeline converting to CO2 service. Commercial-scale CO2 sequestration hub in southeastern Wyoming. Over 10 million tons CO2 per year capacity.
6. Hydrogen Power Generation: Hydrogen-to-power project development through Escalante H2 Power joint venture. Revenue from power generation and potential renewable energy credits.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Tallgrass Energy owns and operates a multi-commodity midstream energy infrastructure network of over 10,000 miles of FERC-regulated pipelines across 14 U.S. states, transporting natural gas, crude oil, CO2, and hydrogen, with capacity to move approximately 10% of U.S. energy. Its offerings are organized around five energy solutions: natural gas transportation and storage, crude oil transportation and terminaling, carbon capture and sequestration, hydrogen-to-power, and water sourcing and disposal, complemented by dedicated natural-gas-fired power generation for hyperscale AI data centers and full-service commodity marketing through Stanchion Energy.

Product overview

Tallgrass Energy is a multi-commodity midstream energy infrastructure company operating a diversified portfolio of pipeline, terminal, storage, and water assets. The company's core offerings are organized around five energy commodity segments: (1) Natural Gas Transportation and Storage, encompassing over 7,000 miles of FERC-regulated pipelines including the Rockies Express Pipeline (REX), Ruby Pipeline, Tallgrass Interstate Gas Transmission (TIGT), Trailblazer, and Cheyenne Connector; (2) Crude Oil Transportation via three FERC-regulated pipelines (Pony Express, Powder River Express, and Iron Horse) and 9 terminals; (3) CO2 Capture and Sequestration through the conversion of the Trailblazer Pipeline to a ~400-mile CO2 transportation service feeding a Wyoming sequestration hub; (4) Hydrogen-to-Power through majority ownership in Escalante H2 Power (EH2 Power) and hydrogen demonstration projects; and (5) Water Solutions for sourcing, recycling, and disposal. The company also operates Stanchion Energy as a commodity marketing sub-brand. Beyond traditional midstream services, Tallgrass has expanded into power generation for AI data centers through the Cheyenne Power Hub project and is leveraging its pipeline infrastructure to serve hyperscale data center campuses.

Differentiator

Problem solved

Functional benefit

Brands

• Trailblazer CO2 Pipeline: CO2 transportation pipeline being converted from natural gas service, approximately 400 miles, serving as backbone of regional CO2 transportation system for carbon capture and sequestration.
• Cheyenne Power Hub

Products and services

• Natural Gas Transportation and Storage FERC-regulated natural gas transportation and storage services across more than 7,000 miles of pipelines including Rockies Express Pipeline (REX), Ruby Pipeline, Tallgrass Interstate Gas Transmission (TIGT), Trailblazer, and Cheyenne Connector, plus East Cheyenne Gas Storage. Capacity to transport more than 10.3 billion cubic feet per day and store approximately 25 bcf of natural gas. Sold under long-term take-or-pay and fee-based contracts to producers, utilities, and industrial customers.
• Crude Oil Transportation and Terminaling FERC-regulated crude oil transportation via Pony Express, Powder River Express, and Iron Horse pipelines with capacity to transport approximately 700,000 barrels per day across approximately 900 miles from Wyoming and southeast Colorado to Cushing, Oklahoma. Nine terminals with storage capacity exceeding 8.3 million barrels. Revenue from long-term shipper commitments.
• CO2 Capture and Sequestration (CCS) Carbon capture and sequestration services via conversion of Tallgrass's approximately 400-mile Trailblazer natural gas pipeline into a CO2 transportation backbone. The service connects industrial and ethanol emitters in Nebraska, Colorado, and Wyoming to a commercial-scale underground CO2 sequestration hub in southeastern Wyoming, with capacity to capture, transport, and permanently sequester over 10 million tons of CO2 per year. Customers include ADM and POET.
• Hydrogen-to-Power Generation Hydrogen-to-power generation services including the conversion of a retired coal-fired power plant to a clean hydrogen-fired generation facility through Tallgrass's majority ownership in Escalante H2 Power (EH2 Power), plus hydrogen demonstration projects for natural-gas-fired power generation using green and/or blue hydrogen. Sold to power markets and supported by renewable energy credits.
• Water Sourcing, Recycling, and Disposal Services Water management services for oil and gas operators including water sourcing, recycling, and disposal. Tallgrass Water Solutions operates 8.3 million barrels of water storage capacity in the Powder River Basin with discharge capability of 40,000 barrels per day, including municipal effluent use in water-stressed areas. Designed to improve efficiency of water usage in drilling operations and ensure regulatory compliance.
• Stanchion Energy Commodity Marketing Full-service natural gas, crude oil, and natural gas liquids (NGL) marketing services including trading, scheduling, risk management, and comprehensive logistics. Provides services to producers, industrials, data centers, power generators, refineries, utilities, and consumers across North American wholesale markets.
• Cheyenne Power Hub — Dedicated Data Center Power Generation More than $7 billion dedicated natural-gas-fired power generation project in southeast Wyoming developed in partnership with Mitsubishi Power Americas. Phase 1 uses two M501JAC gas turbines providing approximately 1,150 megawatts of site-ready power, fueled by natural gas supplied through the Rockies Express Pipeline, to serve the Project Jade hyperscale AI data center campus (1.8-2.7 GW).
• Ruby Pipeline Data Center Power Backbone 683-mile natural gas pipeline acquired by Tallgrass Energy for $282.5 million and being positioned as the gas supply backbone for a proposed hyperscale data center campus (Stratos) in Utah's Box Elder County, with unused capacity able to fuel on-site natural gas generation for AI computing facilities requiring up to 9 gigawatts at full buildout.

Quantifiable outcome

• Over 10 million tons of CO2 per year sequestration capacity
• +2 more outcomes

Named customers7 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Eleven partnerships are on record, tiered strategic, core and major.

• Kevin O'Leary / O'Leary DigitalstrategicStrategic or Co-development Partner · 26 May 2026Ruby Pipeline acquired by Tallgrass for $282.5 million is being positioned as gas supply backbone for proposed hyperscale data center campus (Stratos) in Utah's Box Elder County, backed by Kevin O'Leary and Utah's Military Installation Development Authority.
• Mitsubishi Power AmericascoreStrategic or Co-development Partner · 15 May 2026Tallgrass and Mitsubishi Power Americas announced turbine allocation for Phase 1 of the Cheyenne Power Hub in southeast Wyoming. Two M501JAC gas turbines will provide approximately 1,150 megawatts of capacity to serve Project Jade data center campus. Investment exceeds $7 billion.
• Black Hills CorpmajorStrategic or Co-development Partner · 15 April 2026Pending all-stock merger to form Bright Horizon Energy Corporation. Black Hills filed rate review application seeking $50.6 million in new annual revenue. Microsoft's purchase of land for data center powered by Black Hills generation assets drove BMO to raise price target.
• InvenergymajorStrategic or Co-development Partner · 30 March 2026Precedent agreement with Tallgrass to develop natural gas infrastructure supporting up to three new natural gas-fired power plants in Maricopa County and Yuma County, Arizona. Addresses Arizona's projected 40%+ electricity demand growth through 2031.
• Bridger PipelinemajorStrategic or Co-development Partner · 24 February 2026Joint open seasons for crude oil transportation expansion capacity from the Bakken region for Bridger and Pony Express Pipelines. Companies are seeking shipper commitments to determine expansion capacity.
• ADM (Archer Daniels Midland)coreStrategic or Co-development Partner · 11 November 2025ADM launched world's largest bioethanol carbon capture facility in Columbus, Nebraska using Tallgrass's Trailblazer pipeline to transport over 10 million tons of CO2 annually for permanent underground storage in Wyoming.
• Turboden (Mitsubishi Heavy Industries)strategicTechnology or Integration · 9 September 2025Partnership to install waste heat-to-power systems using Organic Rankine Cycle technology at three gas compressor stations in Ohio and Indiana. Each installation supplies approximately 10 MW of clean electricity to rural utilities while enabling investment tax credits.
• Crusoe EnergycoreStrategic or Co-development Partner · 24 July 2025Joint development of AI data center campus in Wyoming (Project Jade). Crusoe paused development in 2026 but Tallgrass took over direct management continuing the 2.7-gigawatt project. The project represents a major strategic shift into data center power infrastructure.
• POETstrategicStrategic or Co-development Partner · 13 February 2025Collaboration on carbon capture project connecting POET's Fairmont, Nebraska bioprocessing facility to Tallgrass CO2 infrastructure. POET is the world's largest producer of biofuels.
• Drexel Hamilton Infrastructure PartnersstrategicStrategic or Co-development Partner · 1 August 2018Joint development of Plaquemines Liquids Terminal (PLT) in Louisiana as Public-Private Partnership with Plaquemines Port & Harbor Terminal District. Terminal to have up to 20 million barrels of storage and full loading/unloading capability for Post-Panamax vessels.
• Silver Creek MidstreammajorStrategic or Co-development Partner · 10 July 2018Joint venture for Iron Horse Pipeline to transport crude oil from Powder River Basin to Guernsey, Wyoming. Approximately 80-mile pipeline consisting of 40 miles new-build and 40 miles gas-to-oil conversion. Initial capacity approximately 100,000 barrels per day expandable to 200,000.

Scale indicators12 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Williams Companies: Large U.S. natural gas gathering, processing, and transportation operator with FERC-regulated interstate pipelines (Transco, Northwest Pipeline). Directly comparable to Tallgrass in core gas midstream franchise, large-scale interstate pipeline footprint, and increasing exposure to power-generation demand from data centers.
• Kinder Morgan: Largest U.S. midstream operator with extensive natural gas, crude oil, and CO2 pipeline assets, plus LNG and terminaling. Overlaps Tallgrass on FERC-regulated gas pipelines (Natural Gas Pipeline of America, Tennessee Gas), crude systems, and CO2 (Cortez pipeline) used for EOR — directly comparable across every commodity vertical.
• Enterprise Products Partners: Major integrated midstream MLP with natural gas, NGL, crude oil, and petrochemical pipeline networks. Comparable to Tallgrass on crude oil transportation, NGL/gas processing, and fee-based, take-or-pay contract structures across U.S. production basins.
• Energy Transfer: Diversified midstream operator with one of the largest U.S. pipeline footprints, including natural gas, NGL, crude, and refined products systems. Comparable to Tallgrass on long-haul FERC-regulated gas transportation, crude pipelines to Cushing/Gulf, and growing exposure to LNG and power demand.
• ONEOK: Midstream operator focused on natural gas gathering/processing, NGL transportation, and natural gas pipelines. Comparable to Tallgrass on natural gas midstream franchise, long-term fee-based contracts, and processing/gathering infrastructure in major U.S. basins.
• Western Midstream Partners: Midstream operator serving Permian, DJ, Powder River, and Williston basins with gathering, processing, and transportation assets. Highly comparable to Tallgrass on Rocky Mountain basin exposure, crude oil and natural gas gathering, and water-services offerings.
• Magellan Midstream Partners: U.S. midstream operator focused on refined products and crude oil pipelines, terminals, and storage. Comparable to Tallgrass on FERC-regulated crude oil pipeline systems (Pony Express, Seahorse) and large terminal/storage footprint (8.3 million barrels+).

Broad incumbents

• Cheniere Energy: Largest U.S. LNG exporter, operating Sabine Pass and Corpus Christi liquefaction facilities. Adjacent to Tallgrass's gas midstream franchise given REX and Ruby Pipeline connectivity to Gulf Coast LNG demand and bi-directional header system positioning.
• Enbridge: Major North American pipeline and energy infrastructure operator with crude, natural gas, and renewable power assets. Comparable to Tallgrass on large-scale, FERC-/NEB-regulated pipeline franchises and growing renewable/power-generation platform (though broader and more diversified globally).

Regional players

• Pembina Pipeline Corporation: Canadian midstream operator with natural gas, NGL, and crude oil pipelines plus processing and marketing services. Comparable to Tallgrass on integrated midstream platform and fee-based contract model, but focused primarily on Western Canadian Sedimentary Basin.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/tallgrass-energy

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries14 records

Funding overview

Funding rounds3 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Tallgrass Energy