Noble Midstream Partners LP (Noble Midstream) and Plains All American Pipeline, L.P. (PAA) have announced the completion of the Advantage Pipeline, L.L.C. (Advantage) acquisition for US$133 million through a newly formed 50/50 joint venture. Noble Midstream contributed US$66.5 million of cash, funded by available cash on hand and their credit facility, and Plains contributed approximately 1.3 million PAA units and US$26.3 million of cash.
Noble Midstream serves as the operator of the Advantage system, which includes a 70 mile crude oil pipeline in the southern Delaware Basin from Reeves County (Texas) to Crane County (Texas) with 150 000 barrels of daily shipping capacity (expandable to over 200 000 bpd) and 490 000 barrels of storage capacity.
In addition to existing customers, throughput growth is expected from an acreage dedication from Noble Energy, Inc. and a volume commitment from Plains Marketing, L.P. Connections to the Advantage Pipeline from Noble Midstream’s first central gathering facility and Plain’s Wolfbone Ranch Station remain on schedule for completion in the second quarter of this year.
Read the article online at: https://www.worldpipelines.com/business-news/04042017/noble-midstream-and-plains-all-american-complete-pipeline-deal/