Altus Midstream has acquired a 33% equity interest in the Enterprise Products Partners subsidiary that owns the Shin Oak natural gas liquids pipeline.
The pipeline transports growing NGL production from multiple basins, including the Permian, to Enterprise's NGL fractionation and storage complex in Mont Belvieu, Texas.
Supported by long-term customer commitments, the pipeline will ultimately have capacity to transport up to 550,000 barrels per day of NGLs by the fourth quarter of 2019.
NGLs for the system are sourced primarily from Enterprise's Orla natural gas processing complex in Reeves County, Texas, as well as Apache Corporation's Alpine High play, via a long-term NGL sales agreement committing 100% of NGLs from that acreage.
Clay Bretches, CEO of Altus Midstream, says: 'Shin Oak is integrated with Enterprise's existing pipelines and gas processing plants, which provide supply from multiple basins. This integration, along with connectivity to Enterprise's fractionation complex in Mont Belvieu, drives substantial volume through the pipeline and provides superior flow assurance for customers, which is significant competitive advantage for attracting additional third-party business.'
'We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025,' says A.J. 'Jim' Teague, CEO of Enterprise's general partner.
'In addition to providing much-needed takeaway capacity for NGLs, Shin Oak is a key asset in Enterprise's integrated midstream network, which provides unparalleled access to the most attractive domestic and international markets.'
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