Companies Form JV to Acquire Advantage Pipeline
Noble Midstream Partners and Plains All American Pipeline agreed to form a 50/50 joint venture to acquire Advantage Pipeline, which owns a 70-mile, 16-inch crude oil pipeline located in the southern Delaware Basin.
The Advantage Pipeline, constructed in 2013, has 150,000 bpd shipping capacity from Reeves County to Crane County, TX. The Asystem includes 490,000 bbls of combined crude storage at three separate trucking stations in Reeves, Pecos and Crane counties.
The JV will acquire Advantage for $133 million with closing expected in the first quarter 2017.
Upon closing of the JV, throughput growth on the Advantage Pipeline will be driven by an acreage dedication from Noble Energyand a volume commitment from Plains Marketing.
Noble Midstream will serve as the operator, and will construct a wholly owned 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its first central gathering facility. Plains will construct a pipeline to connect its Wolfbone Ranch facility to the Advantage Pipeline. The connections should be completed in the second quarter, a Noble spokesman said.
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