WhiteWater Midstream (WhiteWater), MPLX LP and West Texas Gas, Inc. (WTG) have recently formed a joint venture (JV) to provide natural gas liquids (NGLs) takeaway capacity from MPLX and WTG gas processing plants in the Permian Basin to the NGL fractionation hub in Sweeny, TX. WhiteWater Midstream’s Investment in the JV is backed by Ridgemont Equity Partners, Denham Capital Management and the Ontario Power Generation Inc. Pension Plan.
The JV will provide an optimised approach to pipeline transportation service for NGLs primarily through the utilisation of existing infrastructure with limited initial construction. The solution will facilitate future, capital-efficient expansions that meet customer demands in a recovering basin. The JV is supported by volumes from key processing plants with long-term commitments from top-tier Permian producers.
As part of this NGL transportation solution, the JV has entered into multiple capacity arrangements from Orla, TX to Sweeny, TX including an agreement with EPIC Y-Grade Pipeline LP (EPIC) to own an undivided joint interest (UJI) in EPIC’s existing 24 in. NGL pipeline from West Texas to the Eagle Ford Basin.
Read the article online at: https://www.worldpipelines.com/business-news/06082020/whitewater-midstream-announces-strategic-joint-venture-for-permian-basin-ngl-transportation/