Plains All American Pipeline, L.P. (PAA) and Noble Midstream Partners LP have entered into definitive agreements to form a 50/50 joint venture (JV) to acquire Advantage Pipeline, L.L.C. (Advantage).
Advantage owns a 70 mile, 16 in. crude oil pipeline that is located in the southern Delaware Basin.
The Advantage pipeline has a capacity of 150 000 bpd. It originates in eastern Reeves County (Texas) and runs through Pecos and Ward Counties, to Crane County (Texas). The Advantage pipeline also includes approximately 490 000 bbls of combined crude storage at three separate trucking stations.
The JV will acquire Advantage for US$133 million. The majority of PAA’s 50% share is expected to be paid in PAA units issued to certain of the sellers at closing. The acquisition is subject to customary closing conditions, including the receipt of regulatory approvals.
“PAA is pleased to be entering into this strategic partnership with Noble Midstream Partners in a growing area of the Delaware Basin,” said Greg Armstrong, Chairman and CEO of PAA. “The Advantage pipeline provides area producers with more efficient access to multiple markets through interconnections with PAA’s Permian Basin system.”
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/14022017/plains-all-american-and-noble-midstream-form-joint-venture/