Noble Midstream Partners and Plains All American Pipeline have formed a 50/50 joint venture to acquire Advantage Pipeline’s Delaware Basin pipeline assets.
The joint venture will acquire Advantage for $133 million. The pipeline assets have a capacity of 150,000 barrels per day originating in eastern Reeves County, Texas running through Pecos and Ward Counties, to Crane County, Texas. It also includes 490,000 barrels of combined crude storage at three separate trucking stations.
Noble will serve as an operator and will construct a 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its central gathering facility in the southern Delaware Basin. Plains will construct a pipeline to connect its Wolfbone Ranch facility to the Advantage Pipeline. These connections are estimated to be completed in the second quarter of 2017.
Greg Armstrong, chairman and CEO of Plains, says: ‘The Advantage Pipeline provides area producers with more efficient access to multiple markets through interconnections with Plains’ Permian Basin system.’