Tallgrass Terminals LLC and Tallgrass NatGas Operator LLC were acquired for $140 million in cash from Tallgrass Development, according to a Jan. 3 press release from Tallgrass Energy Partners LP (TEP).

This is TEP’s fifth dropdown acquisition from Tallgrass Development. It was funded at closing through borrowings on TEP’s revolving credit facility.

Tallgrass Terminals owns the following fully operational assets:

--The Sterling terminal near Sterling, Colo., that provides about 1.3 million barrels (MMbbl) of operational storage to the Tallgrass Pony Express crude oil pipeline. This facility’s footprint could accommodate at least 0.8 MMbbl of expanded storage capacity.

--The Buckingham terminal in northeast Colorado that includes four truck unloading skids capable of receiving 16 Mbbl/d and providing an injection point into Tallgrass Pony Express.

--A 20% interest in the Deeprock Development terminal in Cushing, Okla., which provides Tallgrass Pony Express about 2.3 MMbbl of operational storage capacity.

Tallgrass Terminals owns the following projects currently under development:

--About 550 acres in south Cushing, Okla., where civil engineering work is nearing completion and the permitting process is underway for up to 5.5 MMbbl of storage for a potential terminal facility on about 80 acres of the parcel. The terminal would connect with other third-party terminals in Cushing, have inbound pipeline connectivity and provide outbound pipeline connectivity to destinations on the Gulf Coast.

--About 250 acres in Guernsey, Wyo., where permits have been acquired for 2.1 MMbbl.

Tallgrass NatGas Operator is the operator of Rockies Express Pipeline LLC.